Benzinga - Tesla Inc. (NASDAQ: NASDAQ:TSLA) shares fell 6.27% on Monday, defying the broader market rally. The pullback steepened the stock’s year-to-date loss to 52.4%. The predicament has stirred concerns among the staunchest backers of CEO Elon Musk and his electric vehicle venture.
Who’s In Control: There’s nothing wrong with Tesla other than the fact that its CEO works at another company, said Ross Gerber, co-founder of Gerber Kawasaki Wealth and Investment Management. The fund manager was referring to the billionaire’s preoccupation with Twitter.
The firm’s flagship AdvisorShares Gerber Kawasaki ETF (NYSE: GK) exchange-traded fund has Tesla as its top holding, with a weighting of 7.64%.
Tagging Tesla’s Investor Relations Head Martin Viecha, Gerber said the EV maker deserves a focused CEO. “It would be helpful to know what Elon’s plans are,” Gerber added.
Gerber also posed a question regarding who is running Tesla’s day-to-day operation during a “critical time” for the company. He also recommended that Viecha should communicate with shareholders, as $500 billion of lost valuation seem worth some thought.
Twitter Controversy Hurts: Future Fund co-founder Gary Black, whose Future Fund Active ETF (NYSE: FFND) holds about 5,012 shares of Tesla for a 9.41% weighting, took to Twitter to share his views on the stock’s weakness.
The market has voted that the Tesla brand stands tarnished by the “Twitter drama.”
“Where before EV buyers were proud to drive their Teslas to their friends to show off Tesla in their driveways, now the Twitter controversy is hurting Tesla’s brand equity,” Black added.
Black said he, however, doesn’t believe the Tesla brand has been impaired and called for improved communications from the company.
Price Action: Tesla closed Monday’s session down 6.27%, at $67.82, according to Benzinga Pro data.
Read Next: Is Elon Musk Hurting Tesla? Brand Charm Hits New Low On Heels Of Twitter Takeover
Latest Ratings for TSLA
| Feb 2022 | Daiwa Capital | Upgrades | Neutral | Outperform |
| Feb 2022 | Piper Sandler | Maintains | Overweight | |
| Jan 2022 | Credit Suisse (SIX:CSGN) | Upgrades | Neutral | Outperform |
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