Ross Gerber Says Elon Musk's Tesla Should Sell EV Business To Rivian, Says TSLA Brand Reduced To 'Negative'

Investor Ross Gerber, co-founder of Gerber Kawasaki, thinks that Tesla Inc.'s brand value has declined significantly as CEO Elon Musk pivots away from the EV business to autonomy and robotics.

Negative Brand Value

In a post on the social media platform X on Monday, the investor shared that the EV giant's brand value had deteriorated. "Unfortunately the value of Tesla's brand has been reduced to a negative," he said.

Commenting on the automaker's lackluster sales figures, the investor suggested that Tesla should sell the EV business to Rivian Automotive Inc., as it would help with sales. He also said that "Tesla would sell more cars if they changed their name."

It's worth noting that multiple investors have expressed concern about the decline in Tesla's brand value, with Cathie Wood, CEO of ARK Invest, sharing that Tesla's brand image has been impacted by Musk's political ventures. 

Ross Gerber Expresses Excitement For Rivian

Meanwhile, Gerber had earlier hailed Rivian as the company that was "leading the way" for EVs in the U.S. with the upcoming R2 Crossover SUV, which is expected to be priced at around $45,000 for the base trim. Rivian has said that the prices for the R2 would be announced on March 12.

The R2 was also recently spotted in Fairbanks, Alaska, where it was undergoing cold-weather testing. The test vehicle was also seen charging at a Tesla Supercharger station in the city.

Tesla Cybercab Production

Meanwhile, Tesla's Cybercab is set to begin production in April, which was confirmed by Musk, who also touted a radical change in its manufacturing process.

Benzinga Edge Rankings show that Tesla scores well on the Momentum metric and offers a favorable price trend in the Long Term.

Price Action: TSLA gained 0.09% to $417.44 at Market close on February 13.

Photo courtesy: Mijansk786 on Shutterstock.com