This week, investors applauded Elon Musk’s planned return to Tesla as he fell back from the White House, but an investor is not convinced that this will lead to a return.
The actions of the car manufacturer jumped 20% until Friday afternoon since the quarterly results declared on Tuesday, but the long-standing investor Ross Gerber told Business Insider that Tesla’s first quarter of the first quarter of the first quarter.
Investors have examined the company’s dark financial results, choosing to focus on Musk’s commitment to spend less time with the government’s Ministry of Efficiency from May.
But in an interview with BI this week, Gerber, president of Gerber Kawasaki Wealth and Investment Management, said that the optimism of investors on Musk’s commitment to spend more time with Tesla was wrong and that his return to the company could actually be bad for the company.
Gerber said he was even “more disturbed” after calling on the results.
The popularity of musk is down
Gerber thinks that a big problem is Musk himself, even if he is backing up with his work with the government.
When rumors began to swirl that Musk was ready to step back from Doge, Gerber told Bi that it did not matter and that the brand had already suffered.
Data from the Silver Bulletin survey show that 53.4% of Americans see Elon Musk unfavorably, while 39.2% have a favorable opinion on the richest person in the world.
Gerber said that, while protests against the company continued, the billionaire’s yield could further damage the brand and weigh on sales of electric vehicles.
“Customers who have the choice of how they vote with their money voted against him,” said GERBER.
Robotaxy could be a difficult business
The dismay of Gerber when listening to the call for profits has to do with the fact that the company has a history of non-compliance with its own deadlines.
The semi-camon and second generation roadster from Tesla is two delayed products that come to mind.
Gerber said he was not confident in the Robotaxi launch calendar in Austin, scheduled for June. His skepticism is based on his own experience with the total of the company’s autonomous software.
“It doesn’t see people,” said Gerber about his recent experience using autonomous functionality in Los Angeles, adding that he had a better experience using Waymo’s autonomous cars in his three -thousand journey to work.
Gerber also questioned the commercial sense of the Robotaxi initiative.
Even if Tesla technology works, Gerber considers the journey as a difficult business. Comparable cargo networks have a clear profit margin of around 10%, below the median adolescence margin for Tesla automobile activities.
“It is better to sell cars,” said Gerber.
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What would get Studdling Haussier?
On the one hand, Tesla’s assessment must drop. The action is negotiated with a price / benefit ratio of more than 150x, and Gerber thinks that it could be even higher because the profits continue to drop.
Given the lack of growth of the company, Tesla’s shares are not a purchase in its current evaluation.
“I do not see sales increasing and sales are down 20% on the automobile, so the way I see, is that Tesla is declining at this stage,” said Gerber.
Gerber highlighted fast -growing businesses, including Costco, Netflix and Nvidia, as more attractive than Tesla according to their multiple evaluation.
Gerber would also like to see Musk take a step back from the company and become its president, and so that Tesla hires a new CEO which can take charge of daily responsibilities and help save the brand’s reputation.
Gerber thinks that such a decision would allow Tesla to keep its premium assessment linked to the involvement of Musk with the company.
Gerber continues to sell Tesla stocks
Gerber said that he used the recent increase in Tesla’s action as a other opportunity to reduce his position in the electric vehicle manufacturer.
His company first added Tesla to her portfolio in the fourth quarter of 2015 and, as of December 31, held a position of $ 106 million in Tesla shares.
But in the past two years, the company has made profits for its customers by selling around 5% of its Tesla position each quarter.
According to its latest regulatory file, the Gerber company sold 28,481 other Tesla shares in the fourth quarter of 2024. Investors will receive an update on the negotiation activity of the first quarter of the company in mid-May.
Tesla did not respond to a request for comments from Business Insider.
