Wall Street guru and investment veteran Ross Gerber has gone through a lot of ups and downs in his career. Commenting on Tesla’s poor performance in 2024, the President and CEO at Gerber Kawasaki Wealth & Investment Management tried to figure out what lies behind such weakness. Tesla’s stock has slumped by more than 30% this year. Hence, it is acknowledged to be the worst performer among the S&P 500 companies this year. No wonder, the e-car manufacturer is losing favor with investors as they have to downgrade revenue forecasts due to dismal sales. Ross Gerber reckons that Tesla could improve its financial health if CEO Elon Musk focused more on work rather than spending plenty of time on the X social media platform.
The investment expert wonders that Elon Musk uses his account on the X platform for his stand-up instead of discussing Tesla issues that worry investors. The bizarre Tesla CEO even got his nickname Devil of Marketing. Remarkably, Ross Gerber warned investors that something was going wrong with Tesla half a year ago. His own investment firm sold Tesla shares until it was too bad and reinvested them.
Wells Fargo is on the same page. The brokerage company downgraded Tesla stock to an “underweight” rating and slashed its price target to $125 per share from $200. So, Wells Fargo is sending a bearish message to investors.
Interestingly, Wall Street analysts have polar opposite viewpoints about Elon Musk, especially after his Twitter purchase deal. His tweets used to be efficient marketing ploys. Nowadays they puzzle both consumers and analysts. Nevertheless, Ross Gerber gives credit to Elon Musk because of Tesla’s amazing potential.
