Ross Gerber, an early investor in Tesla and current president and CEO of Gerber Kawasaki Wealth & Investment Management, has become increasingly vocal about his concerns regarding Tesla’s future. He predicts that Tesla’s stock could drop by as much as 50% in 2025 due to several pressing issues. Gerber sold approximately $60 million worth of Tesla shares last year, citing declining vehicle popularity and minimal benefits from Elon Musk’s association with former President Donald Trump. Tesla shares have already fallen 16% in 2025, and Gerber highlights four key reasons for his bearish outlook. First, he believes Tesla’s Full Self-Driving technology is flawed due to its reliance on cameras instead of LIDAR sensors, which are used by competitors like Waymo. Second, Elon Musk’s focus on AI and other ventures has detracted from Tesla’s progress. Third, slowing vehicle sales, particularly in international markets like China and Europe, pose a significant threat amid rising competition from companies like BYD. Lastly, Tesla’s premium valuation, trading at a forward price-to-earnings ratio of 118x, far exceeds industry norms, making it vulnerable to a sharp correction if growth stalls. — news from Business Insider
