After Tesla Inc.‘s recent annual shareholder meeting, critical investor Ross Gerber acknowledged Elon Musk‘s leadership, while analystDan Ivespredicted a trillion-dollar market cap for the EV maker.
What Happened: “I think it was also like a referendum on his management in his mind … I love to see Elon running Tesla again,” said Gerber, CEO of Gerber Kawasaki Wealth, on CNBC’s Last Call. Gerber emphasized that Tesla needs to focus on demand for their EVs.
Hearing positive comments from Gerber about Elon Musk is noteworthy, as the investor has long criticized Musk’s leadership and questioned the EV maker’s growth story.
Wedbush analyst Dan Ives, who was on the same panel, responded to Gerber’s comments with a hint of optimism. “I’m sensing a little bullishness from the Bear Gerber,” Ives remarked.
Following Tesla’s recent shareholder meeting, Ives added, “It’s a monumental day, and I ultimately think this will be a market cap north of a trillion dollars.”
Why It Matters: The shareholder meeting saw Tesla shareholders reapprove Elon Musk's multibillion-dollar pay package, signaling strong support for the EV maker's longtime leader and bolstering the board’s position in its efforts to maintain the contested compensation plan.
The approval was announced at Tesla's annual shareholder meeting in Austin, Texas. The company did not provide a percentage breakdown of the vote; in 2018, 73% of the voted shares supported the plan.
After the results were announced, Musk appeared on stage, dancing and expressing his gratitude to the shareholders: "I just want to start out by saying, ‘Hot damn, I love you guys.'"
This change in sentiment from Gerber, who had previously voiced concerns about Tesla’s future, reflects a potential shift in the perception of Tesla’s trajectory. This comes on the heels of Musk’s optimistic outlook for the company, where he hinted at a possible $30 trillion valuation.
Price Action: Tesla Inc. closed at $182.47 on Thursday, up 2.92% for the day, and in after-hours trading, it rose to $182.70, an increase of 0.13%. However, the stock is down significantly year to date, dropping by 26.55%, according to the data from Benzinga Pro.
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