As a court in California announced a suspension of Tesla Inc.'s (NASDAQ:TSLA) license to sell vehicles in the state for 30 days over the Full Self-Driving (FSD) technology's misleading claims lawsuit, top analysts have shared their take on the matter. The Elon Musk-led EV giant faces suspension if it fails to change its policies within 90 days.
Ross Gerber Weighs In
In a post on the social media platform X on Wednesday, investment firm Gerber Kawasaki's co-founder Ross Gerber shared his thoughts following the court ruling. "The days of Tesla calling something full self driving that doesn't fully drive itself are over in California," he said in the post.
Gerber has been a vocal critic of the technology, but in recent times, has hailed the improvements made by the automaker with the v14 update. It's also worth noting that despite his Bearish stance on TSLA, Gerber has confirmed he still has a Tesla position.
Gene Munster Thinks The Decision Is ‘Absurd'
Also taking to the social media platform X on Wednesday, Deepwater Asset Management's Gene Munster shared that the court ruling, which ordered Tesla to rebrand the Autopilot feature, is "absurd" because "when you turn on Autopilot or FSD you get a message, "Keep your eyes on the road. Be attentive at all times," Munster shared.
Munster also outlined that the previous message urged drivers to keep their hands on the steering wheel always. "I bet Elon [Musk] renames it to "California Driver Must Remain Fully Attentive and In Control At All Times Cruise Control," the investor shared.
Munster had earlier shared his predictions for 2026 in the tech industry, highlighting that Tesla would expand driverless Robotaxi operations in multiple cities next year. Currently, the company is carrying out testing for driverless Robotaxis in Austin, in line with CEO Musk's end-of-the-year timeline.
Tesla's Valuation
The automaker recently recorded a surge in stock value, which led to Tesla further bolstering its position as the most valuable automaker on the planet, surpassing $1.58 trillion, which puts it well ahead of rivals, including Toyota Motor Corp. (NYSE:TM) as well as Chinese companies like BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF) and Xiaomi Corp. (OTC:XIACF) (OTC:XIACY).
Tesla scores well on Momentum and Quality metrics, while offering satisfactory Growth, but poor Value. It also has a favorable price trend in the Short, Medium and Long term. For more such insights, sign up for Benzinga Edge Stock Rankings today!
Price Action: According to Benzinga Pro data, TSLA declined 4.62% to $467.26 at market close. However, it surged 0.46% to $469.40 during the after-hours session.
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