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Tesla (TSLA) is making big changes as it maneuvers to reverse its current negative momentum, and one fund manager has an unexpected take.
For months, the former electric vehicle (EV) leader has battled high volatility and consumer backlash against CEO Elon Musk’s concerning behavior. His highly polarizing actions have prompted consumers across the globe to either opt against buying a Tesla EV or sell the one they already own, severely compromising the company’s sales.
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While Musk promised in April that he would be stepping back from his responsibilities at the Department of Government Efficiency, TSLA stock is still down 8% year-to-date. As shares have fallen, speculation has risen that the company may consider making changes at the leadership level.
One prominent shareholder recently called for Musk to step down. But more recently, he issued another shocking prediction for the company’s future.
Fund manager has blunt words regarding Musk’s likely next steps
One of the financial sector’s most outspoken voices on Musk is Ross Gerber. A longtime Tesla shareholder and the co-founder and CEO of wealth management firm Gerber Kawasaki, he has never shied away from offering opinions on Musk and Tesla, even if they are sometimes controversial.
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As noted, Gerber called for Musk to replace himself with another CEO earlier this year, claiming that repairing the damage he has done to the brand requires a new leader. Last week, he revealed what he thinks Musk will do in the near future and where he sees Tesla leading.
In a series of X posts on May 16, Gerber laid out his near-term predictions for Musk and Tesla’s futures. While highlighting several major changes recently announced for Tesla’s board, he said he thinks Musk will end up being chairman as he believes the position will soon be vacant.
This seems to be due to the fact that Robyn Denholm, the company’s current board chair, recently offloaded a significant amount of Tesla stock, indicating that she may be on her way out.
Specifically, as TheStreet reports, “In just the last six months, she has sold $198 million in Tesla shares. These sales were executed under a 10b5-1 agreement that allows insiders from publicly traded companies to sell their shares.”
Gerber also highlighted Tesla’s decision to appoint Jack Hartung, the former president of popular Mexican food chain Chipotle, to its board. Noting his experience in the consumer products space, the fund manager speculated that Hartung may be able to help repair Tesla’s damaged brand, particularly as the company maneuvers to launch a cab business.