On Saturday, Tesla Inc. (NASDAQ:TSLA) drew fresh attention after Gerber Kawasaki Wealth & Investment Management CEO Ross Gerber said he received an email saying production of the Model S and Model X is ending, calling the two vehicles the “best vehicles of all time.” The note lands as Gerber has also been urging drivers to ditch gasoline amid California’s price jump, a point he made while buy an EV and even suggesting Rivian or Kia for shoppers who don’t want a Tesla.
In a post on X, Gerber said the move “saddens” him as Tesla reshapes its lineup at the high end. In the same post, he argued that while autonomy may define the long run, the timeline could be longer than many expect.
Why Tesla’s Production Cuts Are Game-Changing
Ending the Model S and Model X would remove Tesla’s long-running flagship sedan and SUV from new-vehicle production, a notable change for the luxury EV category Tesla helped create. Gerber framed the EV business itself as attractive, but warned that the autonomous future may not arrive quickly.
The shift also comes as competition in electric vehicles keeps intensifying, with BYD frequently cited as a rising pressure point for Tesla globally. For consumers, fewer top-tier Tesla choices could widen the opening for rival brands trying to win premium buyers.
Gerber has also been signaling that Tesla isn’t the automatic default for every EV shopper anymore. In a separate post, he said he’d direct buyers who don’t want a Tesla toward Rivian or Kia.
Is Rising Gas Prices Fueling EV Demand?
Gerber’s pitch for switching has leaned heavily on household budgets, arguing that paying at the pump is avoidable if an EV fits a driver’s routine. He amplified that view alongside a Los Angeles Times report that focused on California being hit harder than other states as gasoline costs rise.
That consumer-cost argument sits awkwardly next to a potential exit for Tesla’s priciest, most established models. If Tesla is indeed winding down S and X production, the company’s ability to capture would-be converts seeking a premium EV could depend more on other vehicles in its range.
Balancing Innovation With Automotive Heritage
This shift in focus comes as Gerber has previously discussed how Tesla’s pivot towards robotics and AI might lead consumers to forget that it originally started as an automaker, stating, “People have already forgotten that Tesla makes cars.” His comments come in light of Tesla’s heavy investments in AI projects such as the Terafab AI chip, which aims to enhance its technological capabilities and could signal a potential merger between Tesla and SpaceX, according to analysts.
With Tesla shares having gained 0.76% to $385.95 recently, the competitive landscape for electric vehicles is evolving, especially as Gerber warns that focusing on robotics could detract from Tesla’s automotive roots. This context underscores the challenges Tesla faces in maintaining its market position while adapting to rising competition in the EV sector, particularly as the luxury segment may see increased options from other manufacturers.
How Software Performance Impacts EV Ownership
Beyond sticker price and fuel savings, Gerber has been focused on whether Tesla’s driver-assist software performs consistently enough to justify big autonomy promises. Last month, he said he used Tesla’s FSD version 14.2.2.4 around West Los Angeles and described a smooth drive through crowded streets near Westwood during an Iranian protest.
He said the return trip exposed a different issue: the system struggled when the vehicle drove into direct sunlight. Gerber argued the limitation is tied to hardware and contrasted it with how people handle glare using sunglasses, visors, or a hand.
Those concerns have been paired with his doubts about Elon Musk‘s plans for an autonomous taxi network and Tesla’s decision to lean on cameras rather than LIDAR for self-driving. In his broader critique of Tesla’s direction, Gerber has also said he expects Tesla stock could drop 50% this year and pointed to his sale of roughly $60 million in Tesla shares as part of his shift in stance.
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