Tesla's major shareholder expects its stock price to be halved, with 4 main reasons, 2 of which are related to Elon Musk

LB Select
2025.02.25 00:51
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Source: on.cc East Network foreign media reports, Tesla shareholder and Gerber Kawasaki Wealth and Investment Management CEO Ross Gerber recently expressed a pessimistic attitude again, predicting that Tesla's stock price will plummet by 50%. Gerber believes that high price-to-earnings ratios, concerns about fully autonomous driving, and the chain reactions arising from Musk's unpredictable behavior will lead to a continued decline in Tesla's stock price. He believes that Tesla's stock price could drop by 50%, mainly due to the following four factors. 1. Musk plans to launch an autonomous taxi network in Texas this June, and Gerber believes it "seems almost impossible to achieve." 2. Gerber believes Musk is overwhelmed with mundane affairs. From managing multiple companies like Tesla, SpaceX, and xAI, to a large number of tweets on social media platforms, to the U.S. government's DOGE department, and being a father to more than a dozen children, 24 hours a day may not be enough. Gerber said that Musk's focus on artificial intelligence is a detriment to Tesla. 3. Car sales remain Tesla's core business, but the growth of this business is beginning to slow down. Additionally, Musk's close relationship with Trump has sparked anger among people, and this anger is not directed at Tesla as a company, but at Musk; Tesla is a way for people to vent their anger. 4

Source: on.cc East Network

According to foreign media reports, Tesla shareholder and Gerber Kawasaki Wealth and Investment Management CEO Ross Gerber recently expressed a pessimistic outlook again, predicting that Tesla's stock price will plummet by 50%.

Gerber believes that high price-to-earnings ratios, concerns about fully autonomous driving, and the chain reactions stemming from Musk's unpredictable behavior will lead to a continued decline in Tesla's stock price. He thinks that Tesla's stock price could drop by 50%, mainly due to the following four factors.

  1. Musk plans to launch an autonomous taxi network in Texas this June, and Gerber believes it "seems almost impossible to achieve."

  2. Gerber believes Musk is overwhelmed with trivial matters. From managing multiple companies like Tesla, SpaceX, and xAI, to a large number of tweets on social media, to the U.S. government's DOGE department, and being a father to more than a dozen children, 24 hours a day may not be enough. Gerber says Musk's focus on artificial intelligence is a detriment to Tesla.

  3. Car sales remain Tesla's core business, but the growth of this business is beginning to slow down. Additionally, Musk's close relationship with Trump has sparked anger among people, and this anger is not directed at Tesla as a company, but at Musk; Tesla is a way for people to vent their frustrations.

  4. Tesla's market value and price-to-earnings ratio are high. Compared to other automakers and large tech companies, Tesla's market value has always been relatively high. If car sales continue to slow down, the premium may decline significantly.

Reports indicate that some Wall Street investment banks also agree with Gerber's viewpoint. JP Morgan holds a pessimistic outlook on Tesla's latest financial report, maintaining a target price of $135 for Tesla's stock, which implies that its stock price could drop by 60% from current levels.

It is reported that Ross Gerber was once a believer in Musk, but last year he sold about $60 million worth of Tesla stock, stating that Tesla's best days are behind it

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