Tesla's Strategic Shift: From 'Best EV Ever' to Robotics, Fueling Investor Debate

Tesla's recent strategic redirection from a focus on its iconic electric vehicles to the burgeoning field of robotics has ignited a fervent discussion among prominent investors. This shift, particularly the cessation of Model S production, has been met with significant criticism, underscoring the tension between established product lines and ambitious future endeavors. As the company steers towards a future potentially dominated by artificial intelligence and humanoid robots, the investment community is closely scrutinizing the implications for its valuation and long-term trajectory, raising questions about the balance between innovation and legacy.

Gerber Kawasaki's Ross Gerber Criticizes Tesla's Transition to Robotics

On April 24, 2026, Ross Gerber, a leading investor at Gerber Kawasaki, voiced strong disapproval regarding Tesla's decision to discontinue its premium Model S and Model X vehicles. Speaking on social media platform X, Gerber retweeted an influential post by Sawyer Merritt detailing the Model S 'Signature' edition, which Gerber lauded as the 'best EV ever made.' He remarked, 'They are spending money to take this production line down,' lamenting the perceived misallocation of resources towards robot manufacturing rather than continuing a highly successful EV line. Gerber underscored his sentiment, stating, 'It's so counterproductive versus building robots elsewhere. This is just wrong,' signaling his concern over Tesla's pivot towards humanoid robot production, specifically the Optimus project.

Adding to the strategic discussions, Elon Musk, CEO of Tesla, confirmed that older vehicles equipped with Hardware 3 (HW3) chips would not support unsupervised Full Self-Driving (FSD) capabilities. However, Musk hinted at potential upgrades, suggesting Tesla might offer to replace HW3 chips with HW4 and enhance camera systems for affected owners. Meanwhile, investor Gary Black of The Future Fund LLC predicted a decline in Tesla's valuation following the slowdown in FSD development. Despite this, Black noted that Tesla's anticipated $25 billion capital expenditure was largely expected given its aggressive pivot towards robotics.

Amidst these developments, Tesla's stock (TSLA) experienced a decline, closing at $373.72 on Thursday with a further dip to $373.18 in overnight trading. According to Benzinga Edge Rankings, Tesla exhibits satisfactory momentum but struggles with poor value, although it maintains a favorable long-term price trend. Musk also indicated that the unveiling of the Optimus Humanoid robot would coincide with its production timeline, anticipated between July and August, acknowledging competitive pressures by stating, 'We've found out our competitors literally do a frame-by-frame analysis and copy everything we're doing.'

This ongoing narrative highlights the complex challenges and strategic decisions confronting Tesla. The company is balancing the legacy of its acclaimed electric vehicles with a bold venture into humanoid robotics and advanced AI. While some investors question the wisdom of sidelining proven successes for future gambles, others recognize the potential long-term benefits of diversifying into cutting-edge technologies. The market's reaction, alongside ongoing technological advancements and competitive dynamics, will undoubtedly shape Tesla's evolution and its position as a leader in both automotive and robotic innovations.