Ross Gerber, president and CEO of Gerber Kawasaki, analyzes demand for Tesla EVs in “Craman Countdown.”
One of Tesla's most loyal and longtime shareholders is expressing wavering confidence in the electric vehicle (EV) company with Elon Musk at the helm.
“Most of our customers own Teslas,” Ross Gerber, president and CEO of Kawasaki Wealth and Investment Management, said Tuesday on “The Claman Countdown.” Therefore, it affects many people.”
“Ever since Elon made such an outspoken and, in my opinion, controversial negative view, Tesla has significantly underperformed relative to other tech stocks,” he continued. “Many of my clients, which I also tweeted a few months ago, sold their stocks in a fit of rage. And now that the stock price is much lower than it was back then, maybe that's why. It turned out to be a good move.”
Tesla stock has lost about 22% of its value over the past six months. At the same time, CEO Musk has recently called for tighter controls on Tesla, while also coming under intense scrutiny for allegedly amplifying anti-Semitic content on X and drug use. There is.
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“As a company, we have been forced to reduce our allocation to Tesla because of the mounting problems and no solutions in sight, as we have seen. [are] Not implemented. We had to be smart investors for our customers and understand that the narrative had changed. The Tesla story is not the same,” Gerber explained.
Elon Musk was coined a “delusional man” by one of Tesla's long-time loyal shareholders. (Getty Images)
The investor also claimed that the EV maker's board is made up of Musk's family and friends, and that “I have never seen a board as conflicted as Tesla's.”
“Elon's own total salary is currently worth $50 billion, and you'd think that would motivate every human being on the planet, right? So if you look at his total salary and his equity combined, , that's nearly 20% of the stock, and he has complete control over the board of directors,'' Gerber noted.
“And what he's basically saying is I want you to give me between $30 billion and $50 billion.” [more] “It's a reward for fulfilling your fiduciary responsibility to the company,” he said, adding, “I mean, no CEO I've ever invested in has been more delusional… That's crazy, to move someone.” Isn't $50 billion enough?” he added.
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Gerber also criticized Tesla's dynamic pricing model, saying it is “hurting” the company by not creating new demand.
“If you produce more cars, you have to sell them at a lower price because you're essentially not creating new demand,” the advisor said. “And most EV buyers who want an EV are buying an EV.” said. “So I don't know what Tesla will do in terms of revenue. They'll sell more cars, but I don't see how they'll make more money with their current strategy.”
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FOX Business host Liz Claman reacts to the Tesla CEO's latest efforts on “Claman Countdown.”
Tesla is scheduled to release its latest earnings report after the closing bell on Wednesday. The company's market capitalization was approximately $655.3 billion as of Tuesday night. Shareholders and analysts will be keeping an eye on his overall delivery goals, advances in artificial intelligence, and the release of his long-awaited Cyber truck.
“What we really want is not to fail, and that's what I'm really concerned about,” Garber said. All we really want is for them to beat that number.”
