On Thursday, Ross Gerber, CEO and President of Gerber Kawasaki Wealth & Investment Management, stated that Musk has ceased acting as Tesla’s head. He associated this change with Musk’s promotion of an anti-semitic comment on X, formerly known as Twitter.
What Happened: Talking to CNBC, Gerber, who holds approximately 420,000 shares in Tesla Inc. TSLA, expressed concern over Musk’s recent activities on X, including his reaction to an antisemitic comment. He claimed that these actions are not in Tesla’s best interest and are, in fact, tarnishing the brand.
“He is not acting as the CEO of Tesla right now,” Gerber said.
He further added, “I’ve never had this with any company I’ve invested in my entire life, where the CEO does so many detrimental things that destroy the brand, because the bottom line that’s what’s happening. It’s absolutely outrageous, his behaviors and the damage he’s caused to the brand.”
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Despite Gerber’s criticisms, he has no plans to divest his Tesla shares. However, he noted increased requests from clients to sell their stakes in the company.
Musk’s contentious comments on X have drawn criticism from tech executives and resulted in IBM halting its adverts on the platform.
Why It Matters: Elon Musk has been under scrutiny for his controversial endorsement of an antisemitic post on X. Facebook co-founder and Asana CEO, Dustin Moskovitz, called for Musk’s resignation from all his roles, including that of Tesla’s CEO. This was in response to Musk’s endorsement of a post promoting the “great replacement theory,” a discredited theory often used against Jewish supporters of immigration. This controversy has led to a backlash from investors and tech executives alike, with some considering divesting their shares in Tesla.
Image via Shutterstock
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