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Despite optimistic delivery forecasts—such as the projected 1.836 million units in 2024, representing around 40% growth—there's skepticism about whether Tesla can meet these targets profitably. Gerber points out that if Tesla's earnings remain around $4 per share this year despite higher sales, it indicates a decline in profit margins, which could be detrimental in the long run.

The Short-Term Concerns versus Long-Term Optimism

Gerber acknowledges that analysts and investors are divided. On one hand, some view Tesla's ability to scale as a double-edged sword—possibilities for economies of scale and dominance in EV markets. On the other hand, there is concern that if profits do not increase proportionally with sales, the stock could face significant setbacks.