Gerber cuts Tesla stake over concerns of Musk's focus on other projects, impacting company value.

From Nasdaq: 2024-08-26 09:08:00

Tesla stock has dropped 11.3% this year despite a recent 2% gain. Shareholder Gerber cut his stake in Tesla due to concerns about Elon Musk’s focus on projects like robots and SpaceX over Tesla’s core business, leading to a decrease in the company’s value.

Gerber believes Musk’s shift from Tesla’s core strategy is impacting its opportunities and shareholder value. Tesla’s recent financial results were mixed, with earnings missing estimates but revenues beating them. The company remains cautious about its vehicle volume growth rate for 2024, expected to be lower than in 2023.

Gerber also worries about potential policy changes impacting Tesla’s future, mentioning the possible repeals of EV tax credits under Trump’s administration. Despite these challenges, some investors remain optimistic about Tesla’s future growth potential and suggest playing ETFs focused on the company’s performance.

One investor remains bullish on Tesla’s long-term prospects, citing a projected five-year growth rate of 21.60% compared to the industry’s 17.20%. There are ETFs available for investors looking to capitalize on Tesla’s future potential, including those focused on the company or heavy on Tesla exposure. Tesla’s AI capabilities and humanoid robots are seen as key factors for future growth.



Read more at Nasdaq: Can Tesla Return to Its Golden Days? ETFs in Focus