Ross Gerber, a prominent Tesla Inc TSLA investor, recently suggested that the company’s stock decline could be reversed if CEO Elon Musk changes his behavior or is replaced. The electric vehicle manufacturer’s stock has plummeted by over 36% since the beginning of the year due to underwhelming earnings, a lackluster product lineup, and broader market challenges.
Gerber, the CEO of Gerber Kawasaki Wealth and Investment Management, believes that a change in Musk’s behavior or a new CEO could quickly reverse Tesla’s fortunes. He also criticized Musk’s recent behavior on social media, which he believes is damaging the company’s image and investor confidence.
Wells Fargo recently downgraded Tesla’s stock and set a price target of $125 per share, predicting a 23% decrease from the current level. The bank described Tesla as a “growth company with no growth” and projected a 32% shortfall in earnings per share for the year.
Despite the current pessimism, Dan Ives of Wedbush Securities believes that Tesla’s stock could rebound by 77% in the next 12 months. Ives suggests that improving Musk’s compensation package and increasing his control of shares could help achieve this.
Gerber has been vocal about his concerns regarding Tesla’s strategy and Musk’s leadership. He recently criticized the company’s high valuation and stagnant growth, urging investors to “face reality” as the market reevaluates Tesla’s position.
In a separate interview, Gerber suggested that Musk’s unfinished projects were contributing to Tesla’s stock plunge, emphasizing the need for a more reasonable valuation. These comments underscore the increasing pressure on Musk to address the company’s challenges and restore investor confidence.
Overall, the future of Tesla’s stock remains uncertain, with investors closely watching Musk’s next moves and the company’s performance in the coming months. The key to reversing the stock decline could lie in changes to Musk’s behavior or leadership, as suggested by Gerber and other industry experts.
