Gerber took his criticism directly to social media, questioning why Tesla isn’t using traditional advertising to put its EVs in front of more potential buyers.
- Gerber argued that higher gasoline prices could create an opportunity for Tesla to promote its electric vehicles to consumers looking for alternatives to gasoline-powered cars.
- Gerber also added that Elon Musk being the face of Tesla and its robotaxi service promoting autonomous driving is a “negative marketing” strategy.
- Data from AAA released on Thursday showed that gasoline prices have soared to a seasonal high of $4.48 per gallon, up from an average of $4.10 a month ago and $3.16 a year ago.
Gerber Kawasaki Wealth and Investment Management CEO Ross Gerber on Friday questioned Tesla Inc.’s (TSLA) strategy to avoid advertising its electric vehicles.
Gerber, a Tesla investor, also pointed to the contrast between Space Exploration Technologies Corp.’s (SPCX) Starlink satellite internet service appearing in ads and the lack of similar advertising for Tesla vehicles.
Tesla shares closed nearly 2% lower on Friday, while SpaceX shares closed 0.4% higher.
Gerber Slams TSLA’s Advertising Strategy
Gerber took his criticism directly to social media, questioning why Tesla isn’t using traditional advertising to put its EVs in front of more potential buyers.
“Why are there starlink ads on TV but no tesla ads to sell EVs when gas prices are through the roof,” Gerber said in a post on X, criticizing Tesla and SpaceX CEO Elon Musk.
The investor argued that higher gasoline prices could create an opportunity for Tesla to promote its electric vehicles to consumers looking for alternatives to gasoline-powered cars.
“Doesn't the CEO know that they would sell more EVs if they tried?” Gerber added.
In response to another post, Gerber said that Musk being the face of Tesla and its robotaxi service promoting autonomous driving is a “negative marketing” strategy.
Gas Prices Hit Seasonal Record
Data from AAA released on Thursday showed that gasoline prices have soared to a seasonal high of $4.48 per gallon, up from an average of $4.10 a month ago and $3.16 a year ago.
AAA said continuing volatility in the Strait of Hormuz and elevated crude oil prices are contributing to the increase. This month is also on track to become the most expensive September on record, with the monthly average at $4.3 so far, above the previous record of $3.83 set in 2023.
The increase comes as U.S. gasoline demand rose last week to 8.84 million barrels per day from 8.79 million while domestic gasoline supplies declined, according to data from the Energy Information Administration.
California is the most expensive gasoline market in the U.S., with an average price of $6.23 per gallon, followed by Hawaii at $5.57, and Washington at $5.54, according to AAA data. Texas is the least expensive market at $3.95, followed by Indiana at $3.96 and Mississippi at $3.99 a gallon.
What Retail Investors Think About TSLA Stock
Retail sentiment on Stocktwits around Tesla trended in the ‘neutral’ territory at the time of writing.
One bullish user believes that Tesla beginning deliveries of its Semi electric truck is not a “sell the news” event.
View this Stocktwits post
TSLA stock is down 17% year-to-date, while SPCX stock is down 1%. The S&P 500 ETF (SPY) is up 17% over the past 12 months, while the Invesco QQQ Trust (QQQ) is up 25%.
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