Tesla’s Soul-Ripped Cheaper EVs: Gerber Slams Cuts

 October 8, 2025 – Just yesterday, Tesla dropped a bombshell with its new “affordable” Model 3 Standard at $36,990 and Model Y Standard at $39,990, but if you’re picturing a budget-friendly gateway to the Tesla dream, think again. Ross Gerber, the sharp-tongued president and CEO of Gerber Kawasaki Wealth and Investment Management—and a die-hard Tesla fan who moonlights as a musician—unleashed a torrent of criticism in his Bloomberg Open Interest chat with Vonnie Quinn. “It’s like ripping the soul out,” Gerber groaned, mourning the loss of what makes Tesla feel like a spaceship on wheels. With the $7,500 federal EV tax credit officially kaput as of September 30, 2025, Tesla’s slashing features to keep prices down, but is this a savvy pivot or a desperate scramble? Buckle up as we unpack the drama, from stripped-down specs to hidden market goldmines, and toss in actionable tips to keep your wallet (and the planet) happy. Who knows—by the end, you might just rethink that impulse buy.

Picture this: You’re cruising in a Tesla, the panoramic glass roof framing the stars, Miles Davis crooning through an immersive sound system that makes it feel like he’s shotgun in the whisper-quiet cabin, and the neck-snapping acceleration pinning you back like a rollercoaster launch. That’s the Tesla magic Gerber’s raving about—and it’s exactly what’s been gutted in these new models. No glass roof to stargaze through, a downgraded audio setup that won’t do justice to your playlist, zero rear-seat entertainment for keeping the kids glued to YouTube on long hauls, and performance that’s, in Gerber’s words, “the slowest” Tesla yet. These aren’t just trims; they’re a betrayal of the brand’s premium, innovative DNA. Tesla’s risking an identity crisis here, shifting from luxury tech icon to mass-market contender, potentially alienating its core fans who crave that futuristic thrill. And at $700 a month with insurance, these models aren’t exactly democratizing EVs—they’re still aimed at folks who could stretch for something better, cannibalizing sales of pricier trims without reeling in new blood.

The timing couldn’t be more ironic. The EV tax credit’s expiration—tied to policy rollbacks under the current administration—has Gerber pointing fingers straight at Elon Musk’s public endorsements. “This sucks and it’s your fault,” he quipped, echoing a growing backlash that’s exploding on X. Posts are buzzing with frustration, like one user noting how legacy brands saw a 27% jump in EV registrations in July 2025 as buyers rushed the credit deadline, while Tesla slipped amid the Musk drama. The divide is real: Some defend Elon’s pragmatism, but others feel betrayed, especially climate-conscious drivers who see this as a massive setback for the environment. Q3 2025 sales spiked thanks to the subsidy proving incentives work, but now EV adoption could stall, with broader ripples like potential cuts to charging infrastructure funding. Yet, whispers on X hint at bipartisan talks for 2026 reversals—could incentives make a comeback? It’s a wake-up call: The tax credit’s end isn’t just a Tesla hiccup; it’s a blow to the whole EV revolution, underscoring how politics can derail green progress.

But here’s where it gets juicy for smart shoppers: Gerber’s golden nugget is ditching the new models for the used market, which is an absolute goldmine right now. The credit’s end flooded dealerships with low-mileage, fully loaded 2023-2024 Model Ys and 3s from folks who upgraded in a panic. Snag a 2023 Model Y Performance with Hardware 4 (HW4) for around $39,990—same as the new “soulless” Model Y Standard, but with all the premium perks like that glass roof, killer audio, and blistering speed. Why obsess over hardware? Teslas evolve like iPhones through software updates, but older Hardware 3 (HW3) models are on the brink of obsolescence as Full Self-Driving (FSD) advances demand HW4. A quick VIN check on Tesla’s site confirms it, ensuring your ride stays future-proof. With Tesla’s depreciation curve (they don’t hold value like gas guzzlers), certified pre-owned HW4 gems under 20,000 miles are steals—platforms like Carvana are brimming. Avoid HW3 at all costs; they’re at risk of becoming “worthless” by 2027 as FSD hits urban autonomy strides.

Zooming out, competitors are circling like sharks, making Tesla’s budget play look even shakier. Take BYD’s Dolphin EV, eyeing the US market in 2025 with prices starting around $29,990 and a solid 340-427 km (about 211-265 miles) WLTP range—cheaper and potentially more efficient than Tesla’s stripped-down offerings. Then there’s Rivian, teasing its affordable R2 mid-size SUV for 2026, born from a VW partnership promising “very affordable” EVs with adventure-ready vibes. These rivals aren’t just undercutting on price; they’re packing better value, like longer ranges or premium designs, which could steal Tesla’s thunder if buyers perceive the new models as half-hearted. It’s a competitive bloodbath where affordability is king, and Tesla’s move might not cut it against these value-driven upstarts.

For investors, the plot thickens with risks lurking beyond simple cannibalization. Tesla’s stock is trading at a lofty 230x trailing earnings as of October 2025, hypersensitive to news cycles with weekly swings of 5-7%. Gerber warns that opting for cheaper trims or used cars could compress margins on premium models, especially as Chinese rivals like BYD flood global markets. Add in the “hype vs. reality” debates raging on X—some call it a bubble ready to pop—and you’ve got volatility city. But don’t panic: Diversify with EV-focused ETFs like DRIV or IDRV to hedge, and keep an eye on X sentiment via hashtags like #TSLA for real-time vibes. Dollar-cost averaging can smooth the ride, especially with potential policy shifts in 2026 midterms sparking incentive revivals.

If buying outright feels risky amid depreciation and uncertainty, consider leasing as your secret weapon. It locks in HW4 for those juicy FSD upgrades (rumors swirl of mid-2026 features like seamless urban driving) without the long-term commitment, dodging the 30-40% value drop in two years. It’s a hedge against the chaos, letting you enjoy the Tesla thrill while policies sort themselves out.

At its core, Tesla’s budget models feel like a rushed patch for a self-inflicted policy wound, igniting a debate: Can the brand chase affordability without losing its iconic edge? Gerber’s rant hits home because it’s raw—a Tesla lover grieving the loss of the glass roof’s glow, the audio’s punch, the acceleration’s rush. These aren’t mere add-ons; they’re the essence that turned Tesla from carmaker to cultural phenomenon. Stripping them risks commoditizing the brand, but hey, maybe it’s evolution. For buyers, the used market’s your playground for premium deals. For investors, tread lightly, blending Tesla’s visionary spark with diversified smarts. And for the planet? This mess is a rally cry to advocate for EV policies that keep the green momentum rolling.