Gerber Kawasaki co-founder Ross Gerber advised Tesla Inc. (NASDAQ: TSLA) owners on Monday to refrain from participating in the EV maker’s robotaxi service rollout, urging them to let the company bear the operational risks.

Business Model Analysis

Gerber described CEO Elon Musk’s vision for the Cybercab as a crossover between Airbnb Inc. (NASDAQ: ABNB) and Uber Technologies Inc. (NYSE: UBER). Under this model, Tesla sells vehicles to third-party fleet managers and retains a revenue share for system management.

The investor noted that this structure shifts pricing and operational risks from Tesla to the fleet operators. Gerber stated that Tesla could take a 20%-30% cut from revenue. He added that if ridership is low, the loss falls on the operators, not Tesla.

Risk Trade-offs

While the model lowers capital expenditure requirements for Tesla, Gerber highlighted a trade-off regarding recurring revenue. He noted that Tesla loses potential recurring income by not owning the cabs but avoids the capital outlay needed to scale the fleet.

Warning to Owners

Gerber issued a specific warning to current vehicle owners, citing the legal principle of Caveat Emptor (let the buyer beware). He pointed out that many Tesla owners have already lost equity in their vehicles.

"I recommend letting Tesla take the risk with this rollout... not you," Gerber wrote on X.

Market Context

According to Benzinga Edge Rankings, Tesla scores moderately on growth and quality metrics but shows poor value and momentum. The stock lacks a favorable price trend across short, medium, and long-term horizons.

TSLA shares rose 0.54% to $355.99 during overnight trading.

Tesla Inc. (NASDAQ: TSLA) shares fell nearly 6% to $354.08 on Friday following a muted Cybercab launch in Austin, Texas. The National Highway Traffic Safety Administration opened an Audit Query within 24 hours of the event.

The regulatory scrutiny targets approximately 1,000 Cybercabs. The agency is examining how Tesla self-certified vehicles lacking steering wheels, brake pedals, accelerator pedals, or mirrors as compliant with federal safety standards.

Limited Fleet and Muted Launch

Tesla began offering Cybercab rides Thursday only in limited areas of Austin. Texas records showed 45 Cybercabs among 420 autonomous Tesla vehicles registered in the state. This fleet had already emerged in records ahead of the launch.

Elon Musk skipped the event. Executive remarks on pricing, manufacturing, and technology lasted roughly 15 minutes. No livestream occurred despite 2 million users waiting on X. No pricing or fleet size details were provided.

Regulatory and Market Reaction

NHTSA Administrator Jonathan Morrison stated the agency supports safe development of automated vehicles but must ensure laws are followed. The stock fell a further 0.34% in after-hours trading.

Gordon Johnson, a Tesla critic, argued the robotaxi narrative has been more about supporting the stock than proving scalable autonomous operations. He noted the absence of Elon Musk, pricing, and fleet size data.

Operational Challenges

Jefferies analysts previously found Tesla rides in Austin were cheaper than Alphabet Inc.’s (NASDAQ: GOOG) Waymo but suffered longer waits, more human safety drivers, and suboptimal routes.

Investor Gary Black argued in July that visible Cybercab inventory means little without commercially scalable autonomy. He dismissed parked Cybercabs at Giga Texas as irrelevant to investors unless they could operate without safety monitors.

Tesla says Cybercab rides are now available to the public in limited parts of Austin. The company states Robotaxi operates with Model Ys across Texas and Florida. It says Cybercab will eventually anchor a larger autonomous network.

What the Numbers Show

The divergence between the scale of regulatory interest and the physical fleet size is stark. While the NHTSA Audit Query covers roughly 1,000 Cybercabs, only 45 such vehicles were registered in Texas at the time of the launch. This suggests the regulatory probe is based on the broader certification claim for the vehicle design rather than the immediate operational deployment volume.