Tesla Needs 'Real CEO' To Reverse Recent Stock Decline, Says Long-Time Investor Ross Gerber: '...Or Elon Changes His Tune And Actually Comes Back To Working'

Ross Gerber, a prominent Tesla Inc (NASDAQ:TSLA) investor, suggested that the company’s stock decline could be reversed if CEO Elon Musk changes his behavior or is replaced. What Happened: The electric vehicle (EV) 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, reported Yahoo Finance on Thursday. “This could turn around very quickly if either Tesla gets a real CEO who’s actually going to help the company, or Elon changes his tune and actually comes back to working at Tesla and promoting the brand in a positive way,” Gerber said. 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. Why It Matters: 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. See Also: Pepe Leaps Into Action With 10% Daily Gain: ‘Elon Has No Issue Consistently Posting Pepe,’ VC Points Out Gerber’s frustration with Musk’s leadership has been mounting, especially after the CEO’s controversial activity on Twitter. Musk’s recent decision to focus on AI initiatives outside of Tesla has also raised concerns about the company’s future. 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. Read Next: Why Can’t Dogecoin And Shiba Inu Keep Up With Other Meme Coins? Elon Musk | Photo generated using Midjourney Engineered by Benzinga Neuro, Edited by Kaustubh Bagalkote The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.