Elon Musk Clashes With Tesla Bull Over Call For Shake Up: 'Please Tell Us Your Great Ideas, Ross…'

Tesla Inc. TSLA stock has been on a free fall, and on Thursday, it retreated further below the psychological level of $150 and settled at its lowest level since mid-November 2020.

What Happened: Investors in the stock have been sounding out advice to CEO Elon Musk and the board to help plot a reversal from the current depressed levels.

Gerber’s 3-Point Plan: Tesla stock now reflects the value of having no CEO, said Ross Gerber, the co-founder of Gerber Kawasaki Wealth and Investment Management. Addressing the board, the fund manager said, “Time for a shake up.”

See Also: How to Invest In Tesla (TSLA) Stock

His AdvisorShares Geber Kawasaki ETF GK has Tesla as its top holding.

Gerber’s expression of frustration drew the attention of none other than the man himself. Musk sought ideas from him. “Please tell us your great ideas, Ross..,” Musk tweeted.

In reply, the Tesla bull reiterated what he has been saying all the while.

His three-point plan to revive Tesla stock, which includes:

• Tesla needs a media and communications team.
• The electric vehicle maker needs a succession plan and should clarify when Musk would return from Twitter.
• The company needs to communicate about Musk’s stock sales and make a “stand still” agreement.

Musk Suggests Going Back To Basics: Musk repeated his reply from a couple of days ago. “Go back and read your old ‘Securities Analysis 101’ textbook,” he said. He also tried to drive home the point that Tesla stock’s underperformance has nothing to do with the fundamentals but with the economy and the Fed.

As the more safe and guaranteed savings account interest rates rise and approach stock market returns, which are not guaranteed, people will increasingly move money out of stocks to cash, causing stocks to drop, he explained.

Gary Black's Take: Future Fund’s Gary Black, however, had a different take. Tagging Musk and Gerber, Black said short duration bank accounts should not be compared to Tesla stock, which is a relatively long-term investment. The comparison should be with the 10-year Treasury note, which dropped from 3.92% to 3.65% on Tuesday.

Since Musk closed the Twitter deal, Tesla stock has lost 38% compared to the Nasdaq 100 Index’s 1% drop, he noted.

“If it was all int rates, NDX would be down a similar amount,” Black said.

Price Action: Tesla closed Tuesday’s session down 8.05%, at $137.80, according to Benzinga Pro data.

Read Next: Gold Bull Peter Schiff Says Don't Bash Elon Musk: This, Not Twitter, Is The Real Reason For Tesla Stock's Plunge