Editor's note: This story was updated with Elon Musk's reaction to Gerber's comments. <\/p>\n
Gerber Kawasaki Wealth and Investment ManagementCEORoss Gerber slammedTesla, Inc. TSLA CEOElon Muskfor the companysdismal first-quarter performanceon Tuesday, grabbing Musk's attention in the process. <\/p>\n
What Happened:Basically Tesla cant sell its cars due to Elons behavior. Lets stop blaming the Houthi rebels or German environmental terrorists. Or a recession that never came. Or interest rates, Gerber said. Only one person [is] responsible for this, he added. <\/p>\n
Gerber's firm, Gerber Kawasaki, holds 3,000 Tesla shares valued at roughly $500,000 in its flagship actively-managed exchange-traded fundAdvisorShares Gerber Kawasaki ETFGK, with Tesla representing a portfolio weighting of 2.37%. <\/p>\n
Expressing a bearish sentiment towards Tesla, Gerber warned of potential downward revisions of future earnings estimates following the first-quarter delivery miss, anticipating analysts to adjust their 2024 and 2025 EPS estimates accordingly. <\/p>\n
See Also:Everything You Need to Know About Tesla Stock <\/p>\n
Tesla CEO Reacts: Musk reacted to Gerber's criticism by labeling him an \"idiot\" and highlighting a sales decline at Chinese EV makerBYD Co. Ltd. BYDDY BYDDF, hinting that Tesla's struggles were not unique. \"Hes such an idiot that he cant even tell hes an idiot. BYD sales dropped by 42% from last quarter. This was a tough quarter for everyone,\" Musk said on X. <\/p>\n
What More Does Gerber Want?Unfortunately Tesla shareholders are paying the price for the reality Elon has created, he added. For over a year Ive been warning about this potential reality. Now its here. Its time for shareholders to assess the blame where due.\" <\/p>\n
The Tesla BOD should be replaced immediately with independent directors as required by law,\" he added. <\/p>\n
In aninterviewwith Fox News, Gerber criticized Tesla's board for its lack of independence and failure to address Musk's controversial Twitter behavior, which he claimed had damaged the brand. <\/p>\n
They, basically all work for Elon and we know it, Gerber said. <\/p>\n
Teslas EVs are best in terms of quality and performance and despite the fact if the company cant sell vehicles, it is due to its CEO, the fund manager said. The problem is not about production but it is about sales, he added. <\/p>\n
When asked ifMusk would be successful in increasing his stake in the EV maker,Gerber said, it is unlikely, given he might have to comply with restrictions such as giving up his role at Twitter and becoming the sole CEO of Tesla. <\/p>\n
Tesla ended Tuesdays session down 4.90% to $166.63, according toBenzinga Pro data. <\/p>\n
Check out more of Benzinga's Future Of Mobility coverage byfollowing this link <\/p>\n
Read Next:Cathie Wood's Ark Invest Unfazed By Tesla's Big Q1 Sales Miss, Hoards $39M Of EV Giant's Stock Tuesday Nvidia Offloading Continue <\/p>\n
Image via Shutterstock <\/p>\n
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'He Cant Even Tell Hes An Idiot:' Elon Musk Furious As Ross Gerber Accuses Tesla CEO's 'Toxic' Behavior - Benzinga<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Editor's note: This story was updated with Elon Musk's reaction to Gerber's comments. Gerber Kawasaki Wealth and Investment ManagementCEORoss Gerber slammedTesla, Inc. TSLA CEOElon Muskfor the companysdismal first-quarter performanceon Tuesday, grabbing Musk's attention in the process. Continue reading