Gerber Kawasaki co-founder Ross Gerber warns Tesla investors that the new Cybercab business model offloads operational risk to fleet owners, advising caution regarding the platform's long-term viability.
Ross Gerber highlights that Tesla's Cybercab business model shifts operational and pricing risks from the company to third-party fleet managers, mirroring an Airbnb-style platform approach. While this strategy reduces Tesla's capital expenditure requirements for scaling, it also limits potential recurring revenue, prompting Gerber to warn individual owners about the risks of participating in the rollout.
Tesla plans to sell Cybercabs to fleet managers and take a 20%-30% cut of the revenue for managing the system, similar to how Airbnb operates.
Gerber suggests that owners should let Tesla take the initial risks of the rollout, citing the potential for loss of equity and the 'Caveat Emptor' (buyer beware) principle.
Investor Ross Gerber is cautioning Tesla owners against participating in the company's upcoming Cybercab rollout. Gerber argues that the proposed business model shifts operational and pricing risks from Tesla to individual fleet managers, potentially leaving owners exposed to significant financial losses if the service fails to gain traction.
Gerber believes the model transfers the burden of operational and pricing risk from Tesla to the fleet managers, meaning owners could face financial losses if the service does not generate sufficient revenue.