Tesla Stock in Turmoil as Longtime Investor Dumps Shares
Longtime Tesla investor Ross Gerber has raised concerns over the carmaker’s trajectory, leading him to sell approximately $60 million worth of shares. Gerber expressed skepticism about Tesla’s ability to meet its sales targets due to waning demand for its vehicles.
Decline in Tesla Car Sales
According to Gerber, there has been a noticeable decline in interest in Tesla’s cars. He observed a surplus of used Teslas on the market, indicating difficulty in offloading vehicles at fair prices. This diminished demand has contributed to the company’s stock decline of 13% this year.
Distraction from Core Business
Gerber criticized Tesla’s emphasis on robotics and autonomous driving technology, arguing that it has distracted the company from its primary focus of selling cars. He dismissed bullish sentiments regarding these advancements, emphasizing the immediate need to boost vehicle sales to ensure the company’s financial stability.
Skepticism over AI and Robotics
Gerber expressed doubt that artificial intelligence (AI) and robotics will be sufficient to salvage Tesla’s declining fortunes. He predicted weak demand for the company’s humanoid robots due to concerns over Elon Musk’s chaotic leadership and the ongoing overhaul of Twitter.
Challenges in Musk’s Leadership
Gerber’s concerns echo the broader scrutiny faced by Elon Musk in his role as Tesla CEO. Since acquiring Twitter, Musk has been accused of neglecting Tesla’s operations and creating distractions that have negatively impacted the company’s performance.
Scrutiny by Investors and Lawmakers
Tesla’s leadership and financial responsibilities have come under increasing examination from both investors and lawmakers. Senator Elizabeth Warren recently sent a letter to Tesla’s board of directors, demanding assurances that Musk is fulfilling his fiduciary duties to shareholders.
Gerber’s Investment Strategy
Despite his concerns, Gerber’s investment fund still holds a $50 million stake in Tesla. However, he has gradually reduced his position, signaling diminished confidence in the company’s ability to achieve its growth targets.
Market Volatility and Uncertainty
Tesla’s stock has experienced significant volatility in recent times, reflecting the uncertainty surrounding the company’s future. Gerber’s actions and commentary highlight the challenges faced by the carmaker amidst declining sales, rising competition, and investor uncertainty.
