Tesla Investor Ross Gerber Sells $60 Million Stake Amid Declining Confidence in Company’s Future
Longtime Tesla investor Ross Gerber has made headlines by selling approximately $60 million of his shares in the electric vehicle manufacturer, citing diminishing interest in Tesla's cars and robots. Gerber's move comes as the company's stock struggles, down 13% this year, fueled by waning sales and intensifying competition, particularly in the Chinese market.
In a recent interview with Yahoo Finance, Gerber expressed his growing skepticism about Tesla's ability to meet ambitious sales goals. “Over time, I’ve just been sort of lowering my position because I don’t have the same confidence that they’re going to achieve the goals set out for Tesla several years ago,” he stated. This sentiment reflects a broader concern among investors who are increasingly impatient with the company’s trajectory.
Gerber noted the surplus of used Teslas flooding the market, leading to significant challenges in reselling his own vehicle at a fair price. “It’s really a quagmire where you have the best products in an industry but a CEO who doesn’t actually work there, who doesn’t try to sell the cars,” he remarked. His comments highlight a growing frustration over CEO Elon Musk's divided attention following his acquisition of Twitter, now rebranded as X.
Despite optimism from some analysts who suggest Tesla might be undervalued as an AI firm, Gerber disagrees. He questioned the demand for Tesla's humanoid robots, suggesting that consumer trust in Musk's leadership is lacking. “Go around to your neighbors and ask them, ‘How many of you would buy a humanoid robot built by Elon Musk?’ And the answer is zero,” he said.
Investor scrutiny surrounding Musk's dual role at Tesla and Twitter has intensified, with lawmakers like Senator Elizabeth Warren urging the Tesla board to ensure Musk remains accountable to shareholders. As the market evolves and competition grows, the pressure mounts for Tesla to refocus on its core business of electric vehicles.
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