Fund manager who called for Musk to step down as CEO has shocking prediction for future of Tesla
Tesla continues to navigate some troubled times, with the electric vehicle brand continuing to feel the fallout of having Elon Musk as its CEO.
The tech billionaire has many business babies, but unfortunately for Tesla, the brand's ties to the world's richest man are hitting it hard in the pocket.
Although Tesla initially boomed in the aftermath of Donald Trump's election win, Elon Musk's own foray into politics has seen the company take a beating.
While Musk has been tasked with trimming the fat on the government spend as the head of the Department of Government Efficiency, the vocal backlash and the fact that thousands have lost their job have seen vocal boycotts against Tesla, and even scenes of violence at dealerships.
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Despite Musk saying he'll soon leave the DOGE behind, some fear it could be too late for Tesla.
The company CEO recently had to face the hard truth that Tesla's profits have plummeted by some 70%, with one top investor saying he should be fired from his position at the top of the EV giant.
Ross Gerber is CEO of wealth management firm Gerber Kawasaki and a longtime Tesla shareholder, who famously called for Musk to be removed as CEO.
Looking to the future of Tesla, Gerber has shared his thoughts about what comes next in a series of posts on X.
He thinks that Tesla chairwoman Robyn Denholm will soon step away from her position due to recent sales of her stocks, leading to Musk moving sideways to become the next chairman.
As noted by TheStreet, Denholm has sold $198 million worth of Tesla shares in just six months.
These were executed under a 10b5-1 agreement that lets insiders from publicly traded companies sell their own shares.
Gerber also pointed to former Chipotle president Jack Hartung being appointed to the Tesla board, highlighting his experience in the consumer products space.
The fund manager suggests that Hartung could help repair the 'damaged' Tesla brand, with timing being crucial thanks to moves into the robotaxi market.
Posting on X, Gerber spoke highly of Hartung and explained: "Not to mention he actually seems like a real independent director. Which is what they need if they are to pass a new pay package and not have it shot down. After all, Denholm has made $500 mil. selling Tesla stock recently. Hard to call her independent."
While Gerber has never held back on making his feelings about Musk clear, he said that there have been no negative headlines about him or the DOGE for two weeks. It's not all smooth sailing, with Gerber continuing: “Tesla sales are down big time while trying to launch a cab service with software and hardware that basically doesn’t work yet."
He concludes that the robotaxi launch is likely to be delayed or lead to a massive share drop, further questioning how long Musk will stay at the helm of this precarious ship.
Gerber could be getting out while he still can, and having dumped 26,000 of his Tesla shares in the first quarter of 2025, it doesn't seem like he has much confidence in the company's future.