Gerber Kawasaki Wealth & Investment Management CEO Ross Gerber, a $Tesla (TSLA.US)$ shareholder, anticipates a 50% plummet in the stock's price this year.

What Happened: Gerber had earlier offloaded approximately $60 million worth of Tesla shares, citing concerns over the company's dwindling popularity.

Despite a brief spike following the 2024 election, Tesla's shares have witnessed a 16% decline this year and have fallen 4% since Gerber's remarks in December.

In his conversation with Insider, Gerber detailed four reasons behind his pessimistic forecast for Tesla. He expressed skepticism over Elon Musk's ambitious goal of rolling out an autonomous taxi network in Austin, Texas, by June.

"All of this stuff is going to come to roost this year because he put this deadline on full self driving working in a couple months. It almost seems impossible for that to happen," Gerber told the outlet.

He also voiced concerns about Tesla's self-driving platform, which depends on cameras rather than LIDAR sensors.

Gerber also indicated that Musk's emphasis on AI could prove harmful to Tesla. He suggested that Tesla's primary business of car sales is slowing down due to rising competition from BYD, the world's largest EV manufacturer based in China.

"His 100% focus is on AI, and that's really a detriment to Tesla more than it's a plus for xAI and all the other businesses because he doesn't work at Tesla anymore," Gerber said. "If he were putting all of his time into full self-driving, I'd feel a lot more confident about Tesla."

He also underscored the potential backlash Tesla may face owing to Musk's close ties with President Donald Trump.

"What this does is it creates this anger. I've never seen this anger towards Tesla, but it's not toward Tesla as the company, it's because of Elon, this is the only way people can take it out," Gerber added.

Gerber's bearish perspective is echoed by several prominent Wall Street firms, including JPMorgan, which has set a $135 price target for Tesla stock, indicating a potential 60% downside from its current levels.

Why It Matters: Gerber's prediction comes at a time when Tesla's stock performance has been under scrutiny. The company's shares have been on a downward trajectory this year, and Gerber's comments add to the growing concerns about Tesla's future prospects.

His concerns about Tesla's autonomous driving platform and the potential backlash due to Musk's association with President Trump underscore the challenges that Tesla may face in the coming years.