Ross Gerber, a long-time Tesla investor known for his "bearish" style of earning in the stock market (the so-called "bears" are investors who earn from falling quotes), has dumped a significant stake in the American electric car manufacturer in the first quarter. This is reported by Business Insider, according to UNN.
Details
Gerber's firm's latest quarterly report, Gerber-Kawasaki Wealth and Investment Management, shows that the investor backed up his recent "bearish views" on Tesla with a large volume of sales, shedding more than 26,000 shares, or just over 10% of the firm's stake. It was his largest stock sale in the quarter, the firm's 13F report shows.
It is not clear exactly when during the quarter Gerber's firm made this transaction. However, after Tesla's shares fell 35% in the first three months of the year, the stock reversed course in the second quarter and rose 52% from its April lows.
The move was triggered by CEO Elon Musk's announcement that he would leave the Department of Government Efficiency. Shares also jumped amid a broader rally as tariff headwinds have eased in recent weeks.
The automaker's stock is still down about 29% from its highs in late 2024.
In a recent interview, Gerber told Business Insider that he is not concerned about recent developments that have supported Tesla's stock price. Elon Musk's departure from DOGE and progress in trade between the US and China are positive forces, Gerber said. But none of this news changes what he believes are the fundamental problems facing the company.
According to Gerber, Tesla currently has three main problems:
- the fully self-driving announced by the automaker "does not work", users report errors in the implementation of the technology. Tesla has already faced lawsuits related to its FSD technology.
- People have become less likely to buy Tesla. The company sold 128,100 vehicles in the US in the first quarter, down 8.6% from last year's sales and 21% from a year earlier. In European markets, sales fell by as much as 81% compared to the previous month.
- Tesla faces stiff competition as it tries to roll out its Robotaxi business.
Since the listed problems are systemic, they will lead to a deterioration in the company's affairs, according to one of its largest investors.
Recall
Tesla's Cybertruck is in crisis. The automaker is still sitting on a ton of old inventory that it is now heavily discounting, and is cutting production to try to avoid even more inventory buildup