Tesla's 'Sweet Little Lies' Hide 'Worst Performance' Ever? Elon Musk's Robot Takeover Talk Is Just A Smokescreen, Says Ross Gerber

Investors, including former Tesla Inc. TSLA bull Ross Gerber, appear increasingly skeptical of CEO Elon Musk's ambitious projections following the electric vehicle maker's rough first-quarter results, which saw profits plunge 71% year over year.

What Happened: On Tuesday evening, Gerber posted a cryptic message on X, saying, “This song is perfect,” alongside a link to Michael Franti and Spearhead's 2006 track Sweet Little Lies on Apple Music.

This song is perfect. https://t.co/a2UXKa5nVO

— Ross Gerber (@GerberKawasaki) April 22, 2025

See More: Tesla Optimus Robot Hit By China’s Rare Earths Crackdown — Elon Musk Says Thousands May Be Ready By Year-End, But No Guarantees

In a separate post, Gerber said that in the 11 years that he’s been covering the company, this is the worst performance he’s seen. “I get Elon will tell everyone about trillions of TAM [total addressable market] and robots taking over the world… anything to get you not to look at the facts,” he says.

I've done Tesla calls for 11 years. This is the worst performance I've seen in Tesla's history. I get Elon will tell everyone about trillions of TAM and robots taking over the world… anything to get you not to look at the facts. As Elon darts off to xAI after he announces he is…

— Ross Gerber (@GerberKawasaki) April 22, 2025

Some analysts, however, are finding silver linings in Tesla's latest results. Gary Black, managing partner at The Future Fund, said on X that the company's "earnings quality was fairly high" this quarter, pointing out that, unlike previous periods, profits weren't heavily propped up by sales of zero-emission vehicle (ZEV) credits.

Black also says that Tesla's operating, other operating, and non-operating expenses were significantly higher during the quarter, further reinforcing his point of earnings quality being fairly high.

2/ $TSLA earnings quality was fairly high: Unlike prior quarters, TSLA's P&L did not get much of a boost from sale of ZEV credits ($595M), SG&A (6.5% of Rev), and Other expense lines (Other operating expense -$94M, Other non-operating expense -$119M), which came in worse than…

— Gary Black (@garyblack00) April 22, 2025

Why It Matters: Analysts and even investors who were previously bullish on the company have voiced their concerns regarding Musk’s time away from the company.

This includes Dan Ives of Wedbush Securities, who on Tuesday said, “Musk needs to leave the govt, take a step back on DOGE, and get back to being CEO of Tesla full-time in our view.”

Musk, who’s been spearheading the U.S. Government’s Department of Government Efficiency said during the earnings call on Tuesday that he will be spending significantly less time on DOGE, starting from May, allowing him to focus more on Tesla.

According to Benzinga’s Edge Stock Rankings, Tesla scores well across all metrics, besides Value, but the price trend is unfavorable in short, medium, and long-term. For more such insights, sign up for Benzinga Edge today!

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