Ross Gerber, the outspoken co-founder of Gerber Kawasaki, isn't mincing words about Tesla Inc. (TSLA) CEO Elon Musk's latest pricing strategy. The investor thinks Tesla's move to make Full Self-Driving available only through subscriptions starting next month is more than just a business decision—it's a warning sign.

The Software Edge Is Disappearing

Gerber took to X on Wednesday to share his concerns, suggesting that Tesla's subscription-only approach represents "the first step" toward the company essentially "giving away the software." His prediction? Autonomous driving features will become standard equipment across the industry within five years.

But here's the kicker: Gerber sees this pricing shift as evidence that Tesla's technological lead is evaporating. "Sadly the technology edge tesla used to have is fading," he wrote, arguing that these "pricing decisions" suggest Tesla's competitors are finally closing the gap on the EV giant.

Musk Bets Big on Subscriptions

Musk recently announced that Tesla would discontinue the $8,000 one-time purchase option for FSD technology, pivoting entirely to a $99/month subscription model. The strategy could drive broader adoption among customers who've been reluctant to drop eight grand upfront for the feature.

Tesla isn't alone in exploring subscription pricing for autonomous tech. Rivian Automotive Inc. (RIVN) rolled out its own autonomous driving technology with a choice: pay $49.99 per month or fork over $2,500 up front. That's notably cheaper than Tesla's pricing on both fronts.

Model Y Dominates Despite Concerns

Whatever anxieties investors like Gerber might have, Tesla's products are still moving. The Model Y claimed the crown as America's best-selling EV in 2025, according to Cox Automotive data. Tesla moved more than 93,000 units of the crossover SUV during the fourth quarter alone.

The company also recently launched a 7-seater version of the Model Y in the U.S., available with the Premium all-wheel drive trim for an extra $2,500. The updated Model Y comes with a new 16-inch touchscreen infotainment display and an upgraded headliner to sweeten the deal.

Price Action: TSLA shares fell 1.79% to close at $439.20 on Wednesday, then slipped another 0.27% to $438 in after-hours trading.