Cybertruck was not made for the 'typical consumer': Investor

In This Article:

Tesla's (TSLA) long-awaited Cybertruck debuted at higher-than-expected price ranges. However, Gerber Kawasaki Wealth & Investment Management President and CEO Ross Gerber, who is also a shareholder, argues the pricing isn't relevant given production constraints limiting scale, telling Yahoo Finance the Cybertruck will still "easily sell out" thanks to the advanced technological features.

Gerber believes Cybertruck offers a window into Tesla’s next-generation vehicle vision, noting the company has not upgraded the current inventory of vehicles for a while. Gerber notes these trucks are a "enthusiast vehicle" and were not made for the "typical consumer."

"I don't think it's hard to sell 250,000 of these a year if they can make them," Gerber tells Yahoo Finance, adding: "I think the challenge is going to be actually making them, not selling them."

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

JOSH LIPTON: Cybertruck delivery event failing to boost Tesla stock as pricing for the EV came in higher than initially promised. This has questions still loom, of course, for investors, not only over Cybertruck production, but also on the EV giant CEO Elon Musk. Here to discuss all that is Ross Gerber, CEO and President of Gerber Kawasaki Wealth and Investment Management, as well as, of course, an investor in Tesla.

Ross, it's great to see you. Listen, you are a shareholder. You were listening to the event, I would imagine, yesterday. Give us your takeaways. What do you make of it?

ROSS GERBER: Well, I mean, the event was a pretty typical Tesla event, with lots of lights and excitement. And it's a very exciting time for Tesla releasing such an advanced incredible vehicle. I don't think the pricing is relevant, because I think they can't make a lot of these vehicles in the short term. And people will pay $100,000 for it, including me.

So I think just the coolness factor, the tech, they can easily sell out the cars they have for the next two years. But that doesn't actually have a huge material impact on Tesla's earnings or overall financial position, which I think it will take years, obviously, for this to have a positive impact. But we do expect pricing to come down as they scale, and that's been the case with every vehicle they've made.

JULIE HYMAN: OK. So I just want to linger on something you said. You are going to buy one of these things, because I thought you were sort of on the fence about this?

ROSS GERBER: No, not the Cybertruck. What I said earlier this week is I'm getting rid of my wife's Model Y for Rivian and I'm going to get rid of my Plaid for a Cybertruck. The plaid I only bought because I was waiting for the Roadster. And I like the plaid. But it's just like a lot of the issue I have with Tesla right now is the models haven't been refreshed for a long time. So I'm excited for the Model 3 Highland to get to the United States. But the Model Y and the Model S and X really need some upgrades as well. And I think that's what Cybertruck is foreshadowing is the new technology that will be in the upgrades for the next cycle of Teslas over the next five years.