Ross Gerber, a prominent investor in Tesla Inc., recently shared footage of a protest outside a Tesla store in Santa Monica. The protest highlights the growing public backlash against the electric vehicle maker, largely due to CEO Elon Musk’s political activities.
Details of the Protest
Gerber posted the footage on social media, captioning it, “Guess the Tesla takeover was in Santa Monica today. My wife ran into this peaceful display of distaste for Elon Musk in front of the Tesla store.” The video ends with the voice of his 9-year-old child saying, “I’m glad we don’t have a Tesla.”
Gerber’s Stance on Tesla
Gerber, who is the CEO of Gerber Kawasaki Wealth and Investment Management, has been critical of Tesla despite being a long-standing investor. He believes that Tesla’s shares remain overvalued, even after plunging nearly 50% since mid-December. Gerber noted that Tesla’s forward price-to-earnings ratio of 65 is more than triple the S&P 500 average, stating that “there’s this game that is happening now where the fundamental story has to be revalued.”
Protests and Backlash Against Tesla
The protests in Santa Monica are not an isolated incident. Demonstrations have occurred at Tesla showrooms across the U.S., with some public figures like singer Sheryl Crow selling their Teslas due to political disagreements with Musk. Rep. Marjorie Taylor Greene has called for an FBI investigation into what she termed “organized attacks” on Tesla facilities.
International Challenges for Tesla
Tesla’s challenges extend beyond the U.S. German sales reportedly dropped 60% year-over-year in January, following Musk’s support for far-right political groups. JPMorgan Chase analysts warned that Tesla “lost too much brand value too quickly” and could face its lowest quarterly deliveries since 2022.
Tesla’s Future Prospects
Despite the challenges, Musk has pledged to double Tesla’s U.S. vehicle production over the next two years. However, the company reported its first-ever annual sales decline in 2024, sparking concerns about its future prospects.
Conclusion
The protest in Santa Monica, led by Ross Gerber and his 9-year-old son, is a testament to the growing public backlash against Tesla and its CEO, Elon Musk. With protests and demonstrations occurring across the U.S. and internationally, Tesla faces significant challenges in regaining public trust and revitalizing its brand.