Tesla is 'the king' of EV transition: Ross Gerber
Tesla (TSLA) shares' recent correction is a buying opportunity for investors bullish on the electric vehicle (EV) company, says investment adviser Ross Gerber.
"If I'm an investor, I'm pretty happy I get this opportunity with Tesla again," Ross Gerber, CEO of Gerber Kawasaki Wealth & Investment Management, told Yahoo Finance
The electric vehicle giant's stock is down about 15% from its all time high reached a couple of weeks ago as CEO Elon Musk has been selling some of his Tesla shares. The stock was under pressure last week and on Monday. Investors have been buying the dip though. Shares rose into green territory on Tuesday and were set to open higher on Wednesday in pre-market.
"They're [Tesla] about to have an amazing run in 2022," says Gerber.
"The tipping point for EVs has happened. We've seen it with the Rivian (RIVN) IPO; we've seen it with Lucid's (LCID) now delivering cars and how the stock has done," he said.
"When you look at what Tesla's done is, they've advanced sustainable transportation — which is their mission," said Gerber. "When you look at the demand for electric vehicles while oil prices have soared ... you have a solution for inflation. It's an EV."
Tesla hit $1 trillion in valuation for the first time ever on October 25. That same day car-rental company Hertz (HTZ) announced the company had ordered 100,000 Tesla vehicles, with delivery by the end of 2022.
"What I've seen from the rental companies I've talked to, is they're buying every EV that they can." said Gerber.
"We've got this confluence of demand and really a limited supply of vehicles — and Tesla is the king of this transition." he added. "The demand of their vehicles is off the charts."
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