Ross Gerber, the President and CEO of Kawasaki Wealth and Investment Management and a long-term Tesla Inc. TSLA investor, has expressed his concerns about the company’s future under the leadership of CEO Elon Musk.
What Happened: Gerber, in an interview with Fox Business, voiced his apprehensions about Tesla’s performance in the market and the impact of Musk’s controversial public statements on the company’s stock. He criticized Musk’s outspoken and, in his opinion, negative views, which have led to a significant underperformance of Tesla’s stock compared to other tech stocks.
Gerber also criticized Tesla’s board, which he claims is filled with Musk’s family and friends, and Musk’s pay package, which he believes is not being utilized to motivate the CEO to fulfill his fiduciary responsibility to the company.
“So there’s never been a more delusional CEO that I’ve ever invested with… It’s crazy, like $50 billion isn’t enough to motivate somebody?”
Gerber also pointed out Musk’s alleged amplification of antisemitic content on X and his recent plea for more control of Tesla. He stated that these issues have led to a loss of faith among many of his clients, who have sold their Tesla stock. He also noted that Tesla’s stock has dropped by about 22% over the last six months.
He also expressed concerns about Tesla’s dynamic pricing model, stating that it is not creating any new demand and could potentially hurt the company’s earnings in the future. Despite these concerns, Gerber acknowledged that Tesla’s market capitalization was around $655.3 billion as of Tuesday evening.
Why It Matters: Gerber has been a vocal critic of Musk and Tesla in the past. In November 2023, he announced that he would replace his Tesla Model Y with a Rivian vehicle after Musk backed an antisemitic claim.
In January 2024, he took a dig at Musk’s X posts, saying that the headlines need to be at the top, not the bottom of the image. His latest comments on Musk and Tesla’s performance reflect a growing concern among investors about the company’s future under Musk’s leadership.
Image via Shutterstock
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