Tesla Investor Ross Gerber Reconciles With Board Ahead Of Investor Day, Withdraws Nomination

Amid the sharp pullback in Tesla, Inc. TSLA shares late last year, fund managers, whose portfolio has the stock as a top holding, strived to reason with the company regarding measures to stem the slide.

What Happened: Ross Gerber, the co-founder of Los Angeles-based Gerber Kawasaki Wealth and Investment Management, previously said on a Bloomberg Technology Twitter Space on Feb. 10 that he would push for a seat on Tesla’s board as an activist investor the following week.

The investment manager confirmed to Axios that he planned to file a letter to the Tesla board the following week, officially announcing his intentions to run for board membership. 

Gerber was primarily concerned about Tesla CEO Elon Musk’s attention being divided between the electric vehicle maker, Twitter and his SpaceX venture. He also took exception to a lack of succession planning at Tesla. Gerber has now confirmed that he has withdrawn the nomination.

See: Everything You Need To Know About Tesla Stock

Gerber Gets Assurance: Gerber tweeted Friday that he has decided to withdraw his nomination and implied that he is looking forward to the upcoming Investor Day, scheduled for March 1. “As a friendly activist, I feel that shareholders have been heard,” he said.

After careful consideration, I’ve decided to withdraw my nomination for the Tesla BOD. As a friendly activist, I feel that shareholders have been heard. Looking forward to what Tesla has to show us next week! $tsla

— Ross Gerber (@GerberKawasaki) February 24, 2023

Bloomberg, which reported the news ahead of Gerber’s confirmation, said it learned that Tesla representatives contacted the fund manager in recent days and said the company would meet with him next week, around the March 1 Investor Day, to discuss his concerns about governance. The Tesla representatives have also assured Gerber that they would provide evidence that they would be able to solve some of those issues and demonstrate that Musk is still engaged, Bloomberg reported.

Gerber’s AdvisorShares Gerber Kawasaki ETF GK, an exchange-traded fund, has Tesla as its top holding. The actively-managed fund holds 7,629 Tesla shares, which account for about 9.24% of the portfolio weighting.

Tesla closed Friday’s session at $196.88, down 2.57%, according to Benzinga Pro data.

Read next: Fans Tout Cybertruck As Tesla's 'iPhone Moment'; Elon Musk Says Demand Won't Be A Challenge But This Will

Photo: Shutterstock