Tesla's brand has gone negative, says investor who wants Rivian to buy the EV business

Ross Gerber prominent Wall Street investor is calling on Tesla to sell its electric vehicle business to rival Rivian, saying the Tesla name has become a liability rather than an asset.

Gerber said on Monday that Tesla’s brand has fallen so far that it is now working against the company. Writing on X, he said: “Unfortunately the value of Tesla’s brand has been reduced to a negative. Tesla would sell more cars if they changed their name and sold the EV business to Rivian.”

Gerber is not alone in this view. Cathie Wood, CEO of ARK Invest, has also said that Musk’s political activities have damaged how people see the Tesla brand.

Rivian has said it will announce official pricing for the R2 on March 12. The vehicle was recently spotted in Fairbanks, Alaska, during cold-weather testing, and photos showed it charging at a Tesla Supercharger station in the city.

On the Tesla side, Musk confirmed that production of the Cybercab is set to begin in April, with the company also touting changes to its manufacturing process.

Rivian posts surprise profit, shares jump 27%

Rivian delivered a shock to the market last week when it reported far stronger results than analysts had expected. Shares in the Irvine, California-based company jumped 27% on Friday after the announcement, with investors seeing the numbers as a sign that Rivian may finally be on its way to lasting profitability after years of heavy losses.

For 2025, Rivian reported a gross profit of $144 million, a major turnaround from a net loss of $1.2 billion in 2024.

“It’s a turnaround for the ages,” said Dan Ives, an analyst at Wedbush Securities. “The past few years have been very frustrating for investors.”

Rivian said the improvement came from stronger software and services revenue, higher average selling prices, and lower costs per vehicle.

Rivian delivered 42,247 vehicles in 2025, down from a record 51,579 the year before, and produced 42,284 over the same period. It still recorded a net loss of $432 million for the year on its automotive operations, though that was an improvement from 2024. The company said it expects to deliver between 62,000 and 67,000 vehicles this year.

Rivian also said Amazon now has more than 30,000 custom-built electric delivery vans running in the United States and parts of Europe. The vans are part of a deal that calls for Amazon to have 100,000 of the purpose-built vehicles on the road by 2030.

The delivery van has been in production largely unchanged since late 2021. Its biggest update came in 2023 when Rivian switched to a lithium iron phosphate battery pack and an in-house electric motor. The company is now planning a broader refresh for the van, which has led segment sales in the United States, boosted in large part by the Amazon contract.

Tesla’s profits fall for second straight year

Tesla, by contrast, reported its second straight year of falling profits last month. The Austin-based company’s net income dropped 46% in 2025, coming in at $3.8 billion.

On Sunday, Daniel Milligan posted a video on X tagging Elon Musk and Tesla’s VP of AI, Ashok Elluswamy, saying his Tesla “tried to drive” him into a lake while running Full Self-Driving version 14.2.2.4.

In the video, Milligan sets a destination on the map, activates FSD, and the car heads straight onto a boat ramp before he hits the brakes.

Milligan then posted a follow-up video the next day to show the incident was not a one-off. “Here is a video I took inside the car to prove I didn’t fake it. It’s repeatable at night,” he wrote. Tesla did not respond to a request for comment.

The videos have drawn fresh attention to questions about how reliable FSD actually is. The National Highway Traffic Safety Administration opened a probe into the technology in October last year, covering over 2.88 million Tesla vehicles after receiving reports of more than 50 traffic safety violations and multiple accidents.

Milligan is not the only one raising concerns. Gerber has also criticized FSD, calling it “annoying” and saying it does not work properly in sunny weather. Gerber was also using version 14.2.2.4 at the time.

Musk, meanwhile, has continued to tout Tesla as having the largest autonomous vehicle fleet in the world. Investor Gary Black of the Future Fund LLC says Tesla stock could rally once the company announces it is running hundreds of unsupervised Robotaxis in Austin and other cities.

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