Autos

'They'll get money if they need it': Tesla bull explains why he's still optimistic

Key Points
  • Tesla has been compared to U.S. automakers Ford and General Motors, although it is still not making profits that can compete with the established automakers.
  • Ross Gerber, the president and CEO of Gerber Kawasaki wealth and investment management, remains bullish on Tesla’s potential, claiming that Ford and GM are “companies from a generation ago,” and that he is "investing in the future, not the past.”
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This CEO is 'very positive' on Tesla's growth right now

Tesla will "quite likely" be able to produce 5,000 Model 3s per week by the end of June, CEO Elon Musk has said.

That deadline has nearly arrived, but Ross Gerber, the president and CEO of Gerber Kawasaki wealth and investment management, told CNBC that the exact figures are not an issue.

“I think that level of precision is not really the issue. I think the issue is they are ramping up and they are very close to making all their numbers,” Gerber said on “Street Signs.”

The company finds itself being compared to established automakers such as Ford and General Motors as the three companies are the largest U.S. automakers by market capitalization. That may oversimplify Tesla’s operations, however, according to the CEO.

“When you compare them to other car companies, I don’t think that’s fair because, remember, these are highly advanced electric vehicles and it’s not like building any other car before. It’s not like building a cheap Ford. This is really an iPhone of cars,” Gerber said.

He said he remains bullish on Tesla’s potential, telling CNBC that Ford and GM are “companies from a generation ago,” and that “we are investing in the future, not the past.”

Many analysts and banks are closely watching Tesla’s activities and there are genuine concerns that the company could run out of cash. Tesla would, however, be able to find more money if it requires that, Gerber said.

“There is so much cash out there,” he said, “I’m not worry about a couple billion dollars here or there that they might need to raise something in the future. They’ll get money if they need it.”