Ross Gerber, CEO of Gerber Kawasaki Wealth, supports Tesla Inc.‘s TSLA strategy shift post-Q1 results, while Dan Ives praised Elon Musk‘s leadership. Despite a revenue dip, Tesla’s shares rise on new model plans.
What Happened: Despite Tesla’s disappointing Q1 results, Gerber is optimistic about the company’s future. He shared his thoughts on Tesla’s new direction in an interview with CNBC’s Last Call.
“As long as Tesla shareholders are fine with a much less profitable version of the company then this vision works fine,” Gerber said. “There’s a difference between owning a Tesla, buying a Tesla and being a shareholder,” Gerber added.
Meanwhile, Dan Ives, an analyst at Wedbush, praised Tesla CEO’s leadership. He said, “Tesla needed an adult in the room, and Elon Musk was the adult in the room.”
Tesla reported a 9% year-over-year revenue drop to $21 billion in Q1, missing the Street’s consensus estimate of $22.15 billion. Despite this, the company’s shares surged after announcing plans to accelerate the launch of new models, including more affordable options and a next-generation platform.
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Gerber had previously voiced concerns about Tesla’s future, predicting a challenging earnings report and questioning the company’s growth strategy. However, he now seems to be on board with the new direction Tesla is taking.
Why It Matters: The recent surge in Tesla’s stock price despite the “ugly” Q1 results can be attributed to the company’s announcement of an accelerated new model launch. This shift in strategy seems to have won over prominent investor Ross Gerber, who had previously expressed concerns about Tesla’s growth strategy.
Gerber’s support for Tesla’s new direction comes after he questioned the credibility of the Tesla board in a recent interview. His latest comments indicate a shift in sentiment, suggesting that Tesla’s strategic changes have the potential to reshape the company’s future.
The statement from Ives is a significant turnaround from his previous criticism of Musk. Just a week ago, Ives had demanded answers from Musk regarding Tesla’s layoffs. He had called for a clear rationale for the cost-cutting measures, especially in light of a challenging quarter for the electric vehicle giant.
Price Action: In after-hours trading, Tesla shares surged by 13.38%, currently priced at $144.61, reflecting a 1.80% increase from Tuesday’s close. Despite these fluctuations, Tesla’s shares have experienced a year-to-date decline of 41.79%, according to the data from Benzinga Pro.
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