- Longtime shareholder Ross Gerber criticizes Tesla‘s focus on AI and robotics as a distraction from weak earnings ahead of its Q1 report.
- Gerber warns that negative brand sentiment, tied to CEO Elon Musk‘s behavior, risks a cash-flow “snowball” as the company relies on EV sales.
- Analysts forecast modest Q1 results with about $21.2 billion in revenue and GAAP EPS of $0.14 after a second straight delivery miss.
- Retail sentiment on platforms like Stocktwits remains “extremely bullish” despite growing concerns over unfulfilled FSD promises.
Tesla, Inc. (TSLA) faces a critical Q1 earnings report Wednesday under a cloud of missed delivery targets and sharp criticism from a major investor. Consequently, shares saw only a modest 0.4% premarket gain on Monday as the debate over the company’s future intensified.
In a recent interview, shareholder Ross Gerber of Gerber Kawasaki Wealth & Investment Management highlighted significant demand risks. He stated, “People just hate the brand now and it sucks because it’s all predicated on Elon’s behavior.” Consequently, he warned that reliance on its core EV business creates a precarious cash position.
Gerber also pushed back on the company’s strategic pivot in multiple posts on X. He argued, “Tesla trying to distract from the lack of earnings they will soon report.” Meanwhile, he asserted the company must make customers whole for Full Self-Driving features that “have never worked as promised.”
Analysts project a weak quarterly financial performance. Jefferies forecasts about $21.2 billion in revenue and $0.14 in GAAP EPS for the period. This follows a quarter where production outpaced deliveries by over 50,000 vehicles, the widest gap in years.
The company’s autonomy claims face legal challenges, according to a Wall Street Journal report. However, retail trader sentiment on Stocktwits remained “extremely bullish” ahead of the report. One user commented, “It’s going to hurt so bad when Elon starts with his promises on the earnings call.”
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