The tumultuous journey of Tesla’s stock price has sparked divergent reactions from two prominent investors: Cathie Wood and Ross Gerber. While Wood, a steadfast Tesla bull, continues to buy shares amid the ongoing decline, Gerber, CEO of Gerber Kawasaki Wealth & Investment Management, expresses apprehension over Elon Musk’s leadership and the company’s falling stock price.
Since the beginning of the year, Tesla’s stock has plummeted by 30%, reaching a 10-month low of $160 per share. This downturn follows a remarkable peak in November 2021 when the stock soared to $407, marking a staggering rally of 2,600% from its humble $15 beginnings in August 2019. However, in the subsequent 28 months, the stock has witnessed a sharp decline of approximately 60%.
Gerber attributes much of Tesla’s stock slide to Musk’s leadership style and calls for a change in behavior. He emphasizes the need for Tesla to have a CEO who will contribute positively to the company’s growth trajectory. Gerber’s frustration with Musk’s level of control over Tesla is not new, as he previously criticized Musk’s dominance within the company.
Despite his reservations, Gerber acknowledges Tesla’s long-term growth potential but advises Musk to “just shut up” and focus on the company’s operations. He points to Musk’s external activities, such as his involvement with social media platform X and the controversial pay package, as distractions that have impacted Tesla’s performance and investor confidence.
In contrast, Wood remains bullish on Tesla’s prospects, doubling down on her investment during the stock’s downturn. ARK Invest, under Wood’s leadership, has continued to support Tesla, even amidst challenges in the electric vehicle market. Wood views the pullback by traditional automakers as an opportunity for Tesla to gain market share and reaffirms her confidence in Musk’s problem-solving abilities.
The relationship between Musk and Wood appears amicable, with the two engaging in public discussions covering various topics related to investing and business operations. Wood admires Musk’s intellect and innovation, particularly in advancing Tesla’s goal of autonomous vehicles, which she considers a “game changer.”
As Tesla navigates through turbulent times, the contrasting perspectives of Wood and Gerber underscore the complexity of evaluating the company’s future trajectory amidst market fluctuations and leadership dynamics.
