Latest news with #GerberKawasaki
CNN
14-07-2025
- Automotive
- CNN
Tesla shareholders want a full-time CEO. That's not how Musk works
This is a crucial year for Tesla. Just ask Elon Musk. In January, he described 2025 as 'maybe the most important' in the company's history, with the admittedly ambitious goals of releasing its long-promised robotaxi service and humanoid robots. But Musk's attention was monopolized by a high-profile role in the Trump administration as problems at Tesla began to mount. Even after stepping very far away from that role, Musk remains focused on a wide range of activities outside of Tesla, including starting a third political party and trying to fix problems at X, his social media platform. The leaves Tesla — the most valuable automaker on the planet, employing 125,000 worldwide — missing one thing every other major company has: a full-time boss focused on its future. Instead, the company has a chief executive who is so polarizing its costing the company sales and likely the ability to attract talent. While Tesla's board and shareholders aren't likely to show him the door, they probably should. 'To have one of the biggest companies in the world, not have a full-time CEO is unheard of,' said Ross Gerber, CEO of Gerber Kawasaki, an investment firm and one of the early investors in Tesla. Gerber, a previous fan of the company and Musk, thinks he has now become a problem for Tesla. 'The fact of the matter is that Tesla is a massive company that needs a lot of attention, and it just isn't getting it,' Gerber told CNN. Tesla faces a slew of problems, like plunging profits and the biggest drop in sales in the company's history, partly due to severe brand damage caused by Musk's political activities. Then there's regulatory credits, a huge source of revenue for Tesla, disappearing under the tax and spending bill just passed by Congress. The bill also took away a $7,500 tax credit for electric vehicle buyers, which will further cut into demand. Meanwhile, Tesla's once-high-flying stock has lost more than a third of its value since hitting a record high last December. A company facing such serious problems needs a CEO who is laser-focused. The mounting problems even have some Tesla bulls believing there needs to be more constraints on Musk. 'We believe this is a tipping point in the Tesla story and ultimately the Tesla Board needs to act now and set the ground rules for Musk going forward around his political ambitions and actions,' Dan Ives, tech analyst at Wedbush Securities, wrote in a note to clients this week. Ives said the board should impose rules for how much time Musk must spend at Tesla and introduce an oversight committee for his political activities. 'Tesla is heading into one of the most important stages of its growth cycle with the autonomous and robotics future now on the doorstep and cannot have Musk spending more and more time creating a political party which will require countless time, energy, and political capital,' Ives wrote. Tesla did not respond to CNN's request for comment on calls for Musk to spend more time at the company. However, Musk responded to Ives' suggestion by posting on X, 'Shut up, Dan.' But it's not just analysts calling for Musk to be required to show up at the job that made him the richest person on the planet. A number of Tesla shareholders, including some Democrats who oversee the investment of public sector pension fund money in Tesla stock, complained in May to Tesla Board Chair Robyn Denholm that Musk's other activities are hurting the company. 'Musk's outside endeavors appear to have diverted his time and attention from actively managing Tesla's operations, as any other chief executive officer of a publicly traded company would be expected to do,' said the letter. 'The current crisis at Tesla puts into sharp focus the long-term problems at the company stemming from the CEO's absence.' Even if Musk is forced to focus solely on Tesla, Gerber says Musk doesn't seem excited anymore about its core EV business, which continues to lose market share even as sales of electric vehicles increase around the globe. 'He doesn't want to be in the car business anymore,' said Gerber. 'He knows that everybody hates him. So, he thinks, 'Let's just focus on this robotaxi business and making robots, because if I put a big shiny object in front of people, they'll be distracted from the reality that Tesla has real problems and I don't have a solution for them.'' Tesla fans will argue that what matters now is the rollout of its robotaxi service, as well as developments in self-driving, robots and artificial intelligence. But there are serious questions as to whether Musk is the right person to oversee the challenging transition. For example, the robotaxi business finally debuted last month in Austin, Texas, but on a very limited basis and only for invited guests, not the general public. That is far behind the robotaxi efforts of Alphabet's Waymo, which is already providing more than 250,000 paid rides a week in Austin, Los Angeles, Phoenix and San Francisco. Gerber said he still drives a Tesla himself and has made more than $100 million on investments in the company. But he says he's sold virtually all his Tesla shares and advised clients to do the same. Gerber said he's frustrated because, with the right leadership, the company could achieve all its goals. But Musk, he says, is not the right leader. 'I don't think he has any grasp or grip on reality and any way at this point, and it doesn't seem to be anybody there to shake him and be like, 'Dude, you know, you're not seeing the world like that everybody else right now,'' he said. But Gerber also doesn't see the Tesla board putting any limits on Musk, let alone replacing him. 'He's not going anywhere,' he said.
CNN
14-07-2025
- Automotive
- CNN
Tesla shareholders want a full-time CEO. That's not how Musk works
This is a crucial year for Tesla. Just ask Elon Musk. In January, he described 2025 as 'maybe the most important' in the company's history, with the admittedly ambitious goals of releasing its long-promised robotaxi service and humanoid robots. But Musk's attention was monopolized by a high-profile role in the Trump administration as problems at Tesla began to mount. Even after stepping very far away from that role, Musk remains focused on a wide range of activities outside of Tesla, including starting a third political party and trying to fix problems at X, his social media platform. The leaves Tesla — the most valuable automaker on the planet, employing 125,000 worldwide — missing one thing every other major company has: a full-time boss focused on its future. Instead, the company has a chief executive who is so polarizing its costing the company sales and likely the ability to attract talent. While Tesla's board and shareholders aren't likely to show him the door, they probably should. 'To have one of the biggest companies in the world, not have a full-time CEO is unheard of,' said Ross Gerber, CEO of Gerber Kawasaki, an investment firm and one of the early investors in Tesla. Gerber, a previous fan of the company and Musk, thinks he has now become a problem for Tesla. 'The fact of the matter is that Tesla is a massive company that needs a lot of attention, and it just isn't getting it,' Gerber told CNN. Tesla faces a slew of problems, like plunging profits and the biggest drop in sales in the company's history, partly due to severe brand damage caused by Musk's political activities. Then there's regulatory credits, a huge source of revenue for Tesla, disappearing under the tax and spending bill just passed by Congress. The bill also took away a $7,500 tax credit for electric vehicle buyers, which will further cut into demand. Meanwhile, Tesla's once-high-flying stock has lost more than a third of its value since hitting a record high last December. A company facing such serious problems needs a CEO who is laser-focused. The mounting problems even have some Tesla bulls believing there needs to be more constraints on Musk. 'We believe this is a tipping point in the Tesla story and ultimately the Tesla Board needs to act now and set the ground rules for Musk going forward around his political ambitions and actions,' Dan Ives, tech analyst at Wedbush Securities, wrote in a note to clients this week. Ives said the board should impose rules for how much time Musk must spend at Tesla and introduce an oversight committee for his political activities. 'Tesla is heading into one of the most important stages of its growth cycle with the autonomous and robotics future now on the doorstep and cannot have Musk spending more and more time creating a political party which will require countless time, energy, and political capital,' Ives wrote. Tesla did not respond to CNN's request for comment on calls for Musk to spend more time at the company. However, Musk responded to Ives' suggestion by posting on X, 'Shut up, Dan.' But it's not just analysts calling for Musk to be required to show up at the job that made him the richest person on the planet. A number of Tesla shareholders, including some Democrats who oversee the investment of public sector pension fund money in Tesla stock, complained in May to Tesla Board Chair Robyn Denholm that Musk's other activities are hurting the company. 'Musk's outside endeavors appear to have diverted his time and attention from actively managing Tesla's operations, as any other chief executive officer of a publicly traded company would be expected to do,' said the letter. 'The current crisis at Tesla puts into sharp focus the long-term problems at the company stemming from the CEO's absence.' Even if Musk is forced to focus solely on Tesla, Gerber says Musk doesn't seem excited anymore about its core EV business, which continues to lose market share even as sales of electric vehicles increase around the globe. 'He doesn't want to be in the car business anymore,' said Gerber. 'He knows that everybody hates him. So, he thinks, 'Let's just focus on this robotaxi business and making robots, because if I put a big shiny object in front of people, they'll be distracted from the reality that Tesla has real problems and I don't have a solution for them.'' Tesla fans will argue that what matters now is the rollout of its robotaxi service, as well as developments in self-driving, robots and artificial intelligence. But there are serious questions as to whether Musk is the right person to oversee the challenging transition. For example, the robotaxi business finally debuted last month in Austin, Texas, but on a very limited basis and only for invited guests, not the general public. That is far behind the robotaxi efforts of Alphabet's Waymo, which is already providing more than 250,000 paid rides a week in Austin, Los Angeles, Phoenix and San Francisco. Gerber said he still drives a Tesla himself and has made more than $100 million on investments in the company. But he says he's sold virtually all his Tesla shares and advised clients to do the same. Gerber said he's frustrated because, with the right leadership, the company could achieve all its goals. But Musk, he says, is not the right leader. 'I don't think he has any grasp or grip on reality and any way at this point, and it doesn't seem to be anybody there to shake him and be like, 'Dude, you know, you're not seeing the world like that everybody else right now,'' he said. But Gerber also doesn't see the Tesla board putting any limits on Musk, let alone replacing him. 'He's not going anywhere,' he said.
Yahoo
10-07-2025
- Automotive
- Yahoo
Tesla Tanks $68 Billion As Elon Musk Unveils 'America Party'—Investors Rattle Over Political Pivot, Trump Backlash Adds Fuel
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk's announcement of a new political party has had a significant impact on the electric vehicle maker. The company's stock plummeted by 6.79% on Monday, resulting in a loss of over $68 billion in market capitalization. What Happened: The stock drop came after Musk announced plans to launch a new political party, raising investor concerns about possible effects on Tesla's brand and business, according to market data. Don't Miss: GoSun's Breakthrough Rooftop EV Charger Already Has 2,000+ Units Reserved — Become an Investor in This $41.3M Clean Energy Brand Today Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Back a bold new approach to cancer treatment with high-growth potential. Musk revealed his plan to establish the 'America Party,' which would focus on a few Senate seats and House districts. This announcement has intensified worries about Musk's increasing involvement in politics, a trend that has previously unsettled investors. President Donald Trump's initial praise for Musk's political activities has turned into criticism, with the two clashing over various policy issues. Trump has labeled Musk's party formation as 'ridiculous' and accused him of going 'completely off the rails.' Why It Matters: Musk's return to politics has drawn criticism from industry veterans. Ross Gerber, co-founder of Gerber Kawasaki, and Dan Ives, from Wedbush Securities, have criticized Musk's political re-entry. They have also questioned Tesla's Board of Directors as the company's stock declined by almost 7% in a single session on Monday. Moreover, Tesla's stock has been affected by other factors, including a sharp drop in sales in the Chinese domestic car market during the first week of July, despite strong second-quarter deliveries. This has added to the challenges facing the company. Read Next: Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — And You Can Invest At Just $6.37/Share If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? Image Via Shutterstock This article Tesla Tanks $68 Billion As Elon Musk Unveils 'America Party'—Investors Rattle Over Political Pivot, Trump Backlash Adds Fuel originally appeared on 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
Yahoo
03-07-2025
- Business
- Yahoo
Investment expert harshly criticizes harmful impacts of 'Big Beautiful Bill': 'Biggest tax scam out there'
An investment expert responsible for managing billions of dollars in assets blasted the U.S. Senate's recently passed One Big Beautiful Bill Act, saying the legislation will tank clean energy and transportation while keeping a massive tax loophole for wealthy hedge fund managers. "While the big ugly bill is attempting to destroy clean energy and transportation, not a whiff of taxing carried interest," Ross Gerber, chief executive officer of Gerber Kawasaki Wealth and Investment Management, posted on X on June 30, a day before the bill was passed. "The biggest tax scam out there." The so-called "Big Beautiful Bill," originally introduced in the House to implement President Donald Trump's agenda through a process known as budget reconciliation, has been highly criticized by members of both parties for a number of reasons — from its drastic cuts to Medicaid and Medicare to its huge tax breaks for the ultra-wealthy. Among the bill's more unpopular provisions have been rollbacks to clean energy incentives, largely tied to the Inflation Reduction Act, which represented the nation's largest-ever investment in reducing heat-trapping pollution and addressing rising global temperatures, according to the Department of Energy. Since the IRA's enactment, companies have poured $321 billion into clean energy projects, according to the Clean Investment Monitor, with a total of 2,369 new facilities opened. The federally backed push to advance technology and infrastructure that can mitigate pollution and provide families with cost savings has resulted in over 30,000 jobs across Texas, Georgia, North Carolina, and Michigan. And even more money stands ready to be invested going forward. "Looking ahead, $522 billion of outstanding investment remains to be spent on construction and installation for announced or under-construction facilities," according to the Clean Investment Monitor's Q1 2025 Update, which said the planned but so far unspent financial infusion is intended to build more than 2,000 facilities projected to generate close to 55,000 jobs across five states. But much if not all of this potential growth could be in jeopardy if the "Big Beautiful Bill" becomes law. Having been introduced in the House, the Senate passed an amended version of the legislation on July 1, sending the new draft back to the House, where it could be approved, further revised, or sent back to committee. Meanwhile, as Gerber pointed out, the bill does nothing to address the multi-billion-dollar tax loophole that allows ultra-wealthy fund managers to pay the capital gains rate of 23.8% rather than the income tax rate of 37% on their share of profits, according to Benzinga. The nonpartisan Congressional Budget Office has estimated that closing the carried-interest loophole would raise government revenues by around $13 billion over 10 years, meaning the provision could cost an average of about $1.3 billion annually. Essentially, adding up the ways it makes cuts and tax breaks, the One Big Beautiful Bill Act proposes a wealth transfer, trading a future of cleaner, more affordable energy — along with food assistance and health care for millions of low-income Americans — while reducing taxes and increasing subsidies for high-income individuals and big businesses. One of those subsidies, too, is to benefit the coal industry. Despite slashing social and clean energy programs, the CBO has estimated the bill would actually add nearly $4 trillion to the federal deficit, due mostly to the $4.45 trillion in tax cuts, according to the Committee for a Responsible Federal Budget. Having been introduced in the House and then revised in the Senate to passage, the Senate version of the "Big Beautiful Bill" now sits with the House for potential approval, further revisions, or a return to committee to work out disagreements. Do you think your city has good air quality? Definitely Somewhat Depends on the time of year Not at all Click your choice to see results and speak your mind. After previously passing by only razor-thin margins largely along party lines, the bill appears poised to pass, however. Still, it has not yet become law. And that means there is still time for concerned residents to share their opinions with their elected officials. You can contact your representative about it through a pre-formatted email here or by phone here. While ultimately she voted to approve the Senate version, Senator Lisa Murkowski said she hoped the House would make further changes to the bill. Apart from simply voting yes or no, Congress members might still take on feedback and propose amendments or persuade their colleagues to think differently about the bill's impacts. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet. Sign in to access your portfolio
Yahoo
02-07-2025
- Automotive
- Yahoo
The latest Musk-Trump feud is a 'nail in the coffin' moment for Tesla, investor Ross Gerber says
Tesla is threatened by Musk's fight with Trump, longtime investor Ross Gerber says. Gerber said he thinks Elon Musk's feud with the president is a "nail in the coffin" for the EV maker. Gerber said he had already sold most of his personal stake in Tesla. Elon Musk has returned to bashing the GOP budget bill in recent days, and in doing so, has reignited his fight with President Donald Trump. In one long-time investor's view, it's bound to create even more challenges for the company, which just reported another quarter of weak vehicle deliveries. Ross Gerber, the CEO of Gerber-Kawasaki Wealth Management and an early backer of Musk's car company, said he believed the Tesla CEO's fight with President Donald Trump was another overhang for the company. Tesla shares are down 22% year-to-date. Gerber thinks that while the feud is bad news, the company is also struggling against a lofty valuation and uncertainty in its various business units, including core auto sales, but also initiatives like robotaxis. Gerber speculated that the stock could fall as much as 50% if the market revalues Tesla. The stock was trading around $316 on Wednesday. "People are just, you know, done with it," Gerber said, speaking to Bloomberg about the Musk-Trump feud on Wednesday. "So this is just another, like, nail in the coffin — which I tweeted — that really is going to hurt Tesla, and I'm very upset about it," he added, referring to a post on X where he called Musk's shots at Trump on social media an "absurd attack." Musk reignited his fight with Trump over the Republican tax and spending bill this week. Tesla shares dropped more than 5% on Tuesday after Trump suggested DOGE should look into canceling contracts with Musk's companies. Gerber added he believed Musk had "destroyed" his image. "You're at this kind of point where it's like, 'What is this guy doing?' You know? You're supposed to be selling cars and robotaxis, and instead we're fighting with the President of the United States. Which he enabled and helped empower, but, I'm sorry Elon, President Trump is way more powerful than you." "he said. "So it's just — quite frankly, it's stupid." The damage is coming at a critical time for Tesla. The EV maker reported on Wednesday that its vehicle deliveries dropped 14% year-over-year in the second quarter. Sales have also plunged 45% in the European Union from January to May so far this year, according to data from the European Automobile Manufacturers' Association released last week. Recent price increases on Tesla vehicles have also likely weighed on sales, Gerber said, adding he believed there was a "severe" supply-demand imbalance for Tesla cars. "Making the car more expensive means less people will buy it. It's as simple as that. And they already have a hard time selling the car," Gerber said. Gerber said he believed Tesla's stock price wasn't justified. The company is trading around 150 times earnings, around three to four times the price-to-earnings ratio of other mega-cap tech firms, like Nvidia and Google, Gerber said. Gerber said his firm's exchange-traded fund completely sold its position in Tesla stock this week, though Gerber-Kawasaki Wealth Management still has around $60 million invested in Tesla among accounts it manages for its clients. The firm has been steadily selling its position in Tesla for more than two years, according to regulatory filings. Gerber said he also continued to hold a small personal stake in Tesla, due to the stock being "one of the best trades" of his life as an early investor. "What's the justification for this valuation? Robots and a robotaxi that doesn't really work. It just seems like there's a big disconnect there, and eventually this reckoning will come," he said. Read the original article on Business Insider Sign in to access your portfolio
