A renowned Tesla bear says he's selling stock after Musk's 'disaster' feud with Trump
The Tesla bull-turned-bear believes Musk's actions are jeopardizing Tesla's business.
Gerber also sees risks for Musk's other companies, such as SpaceX.
Ross Gerber said he is dumping more Tesla stock after Elon Musk's public falling out with President Donald Trump.
The Gerber Kawasaki Wealth and Investment Management CEO told Bloomberg on Thursday that the Trump-Musk feud is a "disaster" for Tesla's CEO. Gerber ripped into Musk's erratic leadership style and the Tesla board's inaction.
Tesla stock plunged as much as 18% on Thursday before clawing back some losses to end the day 14% lower. It was the worst day for the stock since March. On Friday, the stock rose by as much as 6%.
"The board isn't going to do anything. Nobody's going to protect Tesla shareholders and the way you protect yourself is by selling stock," Gerber said. "I personally sold some Tesla stock today. We've been sellers for years and continue to be sellers of Tesla."
For Gerber, the episode is just the latest opportunity to pare exposure to the carmaker. While he was an early Tesla investor, Gerber has soured on the stock in recent years after expressing concerns about the company's business model and Musk's leadership.
In August 2024, Gerber disclosed selling approximately $60 million worth of Tesla shares, and he's continued to whittle his firm's holdings. In February, Gerber accurately predicted a 50% plunge in the stock price, and Gerber-Kawasaki's latest 13F filing revealed the sale of over 26,000 Tesla shares —about 10% of the firm's stake— in the first quarter of 2025.
Even after Tesla stock rebounded sharply from its most recent lows, Gerber remained unconvinced of the company's fundamentals and Musk's leadership.
Gerber said Thursday that Musk has a duty to shareholders to cooperate with the government due to his companies' dependence on government contracts.
The investor thinks the feud isn't just bad news for Tesla stock. Gerber also thinks it could negatively affect Musk's other companies such as SpaceX.
"SpaceX relies almost 100% on governments around the world and the US government to fund it, and this is an easy target because we don't need to go to Mars, that's for sure. And so who's going to pay for all this stuff?" Gerber said. "SpaceX valuation was probably cut in half today because of this behavior."
Read the original article on Business Insider
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 minutes ago
- Yahoo
Goodbye stagflation: 3 reasons BofA sees the US economy avoiding a worst-case scenario
Bank of America thinks the global economy is leaning away from the worst-case scenario: stagflation. Factors like Trump's policies & AI investment could support an economic boom instead, the bank said. Stagflation, where inflation rises while growth slows, is thought to be even harder to remedy than a recession. The US economy may have successfully steered clear of a dire outcome many observers were warning of just a few months ago. That's according to analysts at Bank of America, who said they believe the US economy could be more on track for a cyclical boom rather than an episode of stagflation, a nightmare situation in which inflation rises while economic growth slows. Stagflation is commonly thought of as even worse than a typical recession, as policymakers are prevented from cutting interest rates to boost the economy. For a while, that scenario was one of the biggest fears on investors' minds as they weighed the impact of Donald Trump's "Liberation Day" tariffs. But strategists said they think the economy is now leaning away from such a situation, even as many global fund managers surveyed by the bank said in June that they thought the global economy would slip into stagflation over the next 12 months. "The latest fund manager survey shows a small increase in investors expecting a Boom rather than the base case of Stagflation," analysts wrote, defining a "boom" as above-trend economic growth and above-trend inflation. "We agree with this building minority, and present below corroboration from our quantitative work," they added. Here are three reasons the bank sees stagflation risk fading. 1. Trump's pro-growth agenda President Donald Trump's America-first economic agenda is expected to act as a tailwind to the US economy, BofA strategists said. The bank pointed to stimulus measures included in Trump's "Big Beautiful Bill," as well as the push to boost activity in US manufacturing. "Moreover, with mid-term elections a few quarters away, it behooves the current administration to implement pro-growth policy now," the bank's strategists added. 2. Big spending Companies and the public sector are spending big on artificial intelligence, infrastructure, and manufacturing, BofA said. For AI in particular, analysts said they were expecting $700 billion in capex from the so-called hyperscalers through 2025 and 2026, with "upward revisions each quarter." "The number of companies outside of the US planning to expand manufacturing capacity in the US continues to increase. Municipalities have also refocused on infrastructure with aged capital stock fraying as domestic activity increases," they added. 3. Economic recovery mode Bank of America's US Regime Indicator, a gauge for where the US currently is in the business cycle, looks to be "on the brink" of an economic recovery, analysts said. The US Regime Indicator ticked lower in June, which indicates that the economy is still in a "downturn" phase. Downturn phases are typically followed by economic recovery phases, the bank suggested. The US Regime Indicator saw six inputs from the economy improve last month, strategists noted, which also suggests that the economy could soon be on the uptrend. Here were the six positive changes analysts saw: Earnings per share revisions. Earnings revision breadth bottomed out around -25% in April, according to Morgan Stanley data. Since then, it's improved to -5%, the bank said in a June note, implying that the market is growing more optimistic on corporate earnings. GDP forecasts. Despite a contraction in the first quarter, real GDP was projected to expand 2.8% year-over-year in the second-quarter, according to advanced estimates from the Commerce Department. Manufacturing strength. The Institute for Supply Management's Production Index, one measure of activity in manufacturing, rose to 50.3 in June, which signals that production moved into expansionary territory. Leading Economic Indicators. A collection of economic indicators showed signs of improvement on a year-over-year basis, BofA said. Capacity Utility. The use of "installed productive capacity" in the goods and services sector also improved on a year-over-year basis, strategists added. High-yield credit spreads. Credit spreads—which is the yield paid over a benchmark—have narrowed, which signals higher investor confidence and lower levels of financial stress among companies. Read the original article on Business Insider Sign in to access your portfolio
Yahoo
2 minutes ago
- Yahoo
Trump-Xi Meeting On Horizon As US-China Hold Marathon 5-Hour Trade Talks In Stockholm
Top economic officials from the United States and China met in Stockholm on Monday to discuss extending the trade truce between the two nations. This meeting is crucial as it aims to resolve ongoing economic disputes that have been central to the trade war between these global economic powerhouses. What Happened: U.S. Treasury Chief Scott Bessent and China's Vice Premier He Lifeng were among the key figures present at the meeting, which took place at Rosenbad, the Swedish prime minister's office, reported Reuters. The discussions, which lasted over five hours, are part of efforts to extend a trade truce by three months. China faces an August 12 deadline to finalize a durable tariff agreement with President Donald Trump's administration. Negotiators left the venue around 8 p.m. without speaking to reporters, and discussions are set to continue on Tuesday. During a press conference in Scotland, Trump expressed his desire for China to open up its economy. Without an agreement, global supply chains could face disruptions due to potential U.S. duties returning to high levels. U.S. Trade Representative Jamieson Greer told CNBC he did not anticipate a major breakthrough but expected continued monitoring of the agreement's implementation and groundwork for future trade enhancements. S. temporarily paused tech export restrictions to China to support trade talks and Trump's planned meeting with Xi, according to an earlier report. The Commerce Department delayed enforcement actions to avoid disrupting negotiations. The move could boost semiconductor giants like Nvidia and AMD, though national security experts raised concerns about compromising America's AI edge. This meeting in Stockholm marks the third encounter this year between Bessent and Chinese Vice Premier He. The discussions are crucial in maintaining current tariff levels while both nations work towards a potential meeting between their leaders later in the year. Recently, Trump announced a 15% tariff trade agreement with the European Union, ending months of trade uncertainty. This agreement marked a significant drop from the previously threatened 30% tariff. The EU will not impose a tariff on U.S. imports, bringing stability and predictability for businesses on both sides of the Atlantic. Additionally, Trump recently declared a monumental $550 billion trade agreement with Japan, which is expected to create hundreds of thousands of jobs. This deal will see Japan investing heavily in the U.S., with America receiving 90% of the profits. Japan will also open its markets to U.S. products while agreeing to a reciprocal tariff of 15% on U.S. imports. Check This Out: Lawmakers Made Huge Investments This Year. Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool Photo Courtesy: Engineer studio on This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Trump-Xi Meeting On Horizon As US-China Hold Marathon 5-Hour Trade Talks In Stockholm originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Boston Globe
4 minutes ago
- Boston Globe
Brown University borrows $500 million more amid ‘deep financial challenges'
Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up BIOTECH Advertisement Beleaguered Sarepta says it will 'honor' $100 million payment to Arrowstone Advertisement Arrowhead Pharmaceuticals Inc. said Monday that it's owed a $100 million milestone payment from Sarepta Therapeutics Inc. within the next two months, pressuring the beleaguered Cambridge-based biotech company just days after it stopped selling its biggest drug due to safety concerns. Arrowhead has stepped up public pressure on Sarepta over the past week, saying it could take back the rights to its drug if Sarepta fails to make payments. Sarepta has staked much of its future pipeline on RNA-targeting drugs, including those developed by Arrowhead. 'We intend to honor our commitments' to Arrowhead, Sarepta said in an emailed statement. Arrowhead investors have questioned whether Sarepta can make the payments, said TD Cowen analyst Joseph Thome. Monday's announcement, he said, was likely aimed at assuaging investors 'who were nervous that something might go sideways.' Earlier this month, Sarepa said it was cutting more than a third of its workforce and pausing several drugs in its pipeline to reduce costs. Sarepta is staring down $1.2 billion of debt and warned in filings earlier this year that its cash flow may not be enough to pay that obligation, which is due in 2027. — BLOOMBERG NEWS. INTERNATIONAL Trade court denies request to restore tariff exemption for small shipments A US trade court has for now denied an effort to restore a tariff exemption for small-value packages from China that President Trump ended earlier this year. The decision from the Court of International Trade on Monday in the fight over what's known as the 'de minimis' tariff exemption is the latest favorable order for the Trump administration in its defense against multiple lawsuits over his move to raise global tariffs. The three-judge panel said it wouldn't act in a case brought by a US-based auto parts distributor while a set of separate legal challenges to Trump's tariff actions are pending before a federal appeals court. The president's contested policies remain in effect for now. The US Court of Appeals for the Federal Circuit is set to hear arguments at the end of this month in the earlier cases, and in Monday's order, the three-judge panel wrote that it 'will not grant redundant, contingent relief' while the other fight works its way through the US legal system. Packages coming into the United States have qualified for the exemption if they have a retail value of $800 or less. Trump's move to end it for China and Hong Kong hurt discount Chinese marketplaces such as Temu and Shein Group Ltd. that ship low-cost clothing, household goods, and other items directly to US consumers. The administration has accused Chinese chemical companies of abusing the policy to ship illegal synthetic opioids to the United States. Small businesses in the United States have also said they're feeling the pinch. — BLOOMBERG NEWS Advertisement DEMOGRAPHICS In bid to boost birthrate, China will offer subsidies of $502 per child China announced that it will start handing out childcare subsidies across the nation, in its latest push to boost birthrates after a worrying drop in recent years. The government will spend $502 a year per child under age 3, according to the official Xinhua News Agency. The assistance, effective retrospectively from Jan. 1 this year and available regardless of the first, second, or third child, is meant as an incentive for young couples wary of rising costs of child-rearing. The policy is expected to benefit more than 20 million families each year, Xinuha reported. China has previously offered tax breaks and has been working to offer more affordable daycare services, it said. The latest measure follows China's population shrinking for a third straight year in 2024. New births at 9.54 million last year was only half of the 18.8 million registered in 2016 when China lifted its one-child policy. Diminishing birthrate is a worry for the world's second-largest economy, where the working-age population has been declining in a threat to labor supply and productivity. The country, which lost its title as the most-populous nation to India in 2023, may see its population drop further to 1.3 billion by 2050 and below 800 million by 2100, according to the UN's demographic modeling. — BLOOMBERG NEWS Advertisement HIGHER EDUCATION Amid federal probe, UVA business school ends diversity partnerships The University of Virginia's Darden School of Business suspended its partnerships with several organizations dedicated to increasing opportunities for underrepresented groups in business schools amid persistent calls from the White House to dismantle diversity, equity, and inclusion initiatives in order to maintain federal funding. The decision was 'part of a broader review of policies, programs and practices across the University of Virginia,' UVA Darden spokesperson McGregor McCance wrote in a statement. UVA Darden suspended a three-decade long partnership with the Consortium for Graduate Study in Management, which aims to increase Black, Native American, and Hispanic representation in business schools, and a two-decade long connection to the Forté Foundation, which advocates for more women in business education. The school also suspended its ties with Reaching Out MBA, which offers scholarships and networking opportunities for LGBTQ+ students, and Management Leadership for Tomorrow, which focuses on expanding economic mobility and building better workplaces. The Trump administration has been targeting DEI programs at educational institutions, alleging they constitute a form of racial discrimination. In a letter sent to schools in February, the Department of Education threatened institutions that failed to comply with the loss of federal funding. And recently, the administration has followed through on those threats. UVA is being investigated by the Department of Justice over its DEI policies, which may result in the termination of federal funds, according to a June 16 letter sent to the head of UVA's board. The probe prompted University of Virginia president James Ryan to resign last month. — BLOOMBERG NEWS Advertisement
