Prominent Tesla investor Ross Gerber has publicly criticized Tesla Board Chair Robyn Denholm, accusing her of neglecting shareholder interests while amassing substantial personal wealth from her position. Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, has been vocal about his concerns regarding Denholm’s role in protecting the interests of Tesla investors.
Background
Denholm has been a member of Tesla’s board since 2014 and has received approximately $682 million in cash and stock as compensation. She has already sold about $532 million worth of Tesla stock, sparking criticism from investors who feel she is not adequately representing their interests. Denholm has been described as the “chief defender” of CEO Elon Musk’s controversial $56 billion pay package, which has faced legal challenges.
Gerber’s Criticism
Gerber’s comments came in response to a report revealing Denholm’s compensation since joining the board. He stated that Denholm is “the woman paid off to do NOTHING to protect the 83% of Tesla investors she is negligently representing. She only represents one shareholder, Musk.” Gerber’s criticism highlights the growing tensions surrounding Tesla, particularly with regards to Musk’s role in the company and his political activities.
Broader Tensions
Tesla faces mounting protests at showrooms nationwide, triggered by Musk’s role in the Department of Government Efficiency (DOGE) and his political activities. Gerber has shared footage of protesters outside a Tesla store, concluding with his 9-year-old child saying, “I’m glad we don’t have a Tesla.” The criticism extends beyond Gerber, with Wedbush Securities analyst Dan Ives remarking that “Tesla investors are seeing patience wear thin” regarding Musk’s divided attention.
Impact on Tesla
Tesla reported its first-ever annual sales decline in 2024, although Musk pledged to double the company’s U.S. vehicle production over the next two years. Despite being a long-term investor, Gerber has grown increasingly critical of Tesla, stating that the shares remain overvalued even after plunging nearly 50% since mid-December. The company’s forward price-to-earnings ratio remains more than triple the S&P 500 average, sparking concerns about the sustainability of its valuation.
Conclusion
The criticism of Robyn Denholm and Elon Musk highlights the growing concerns surrounding Tesla’s governance and leadership. As investors continue to scrutinize the company’s actions, it remains to be seen how Tesla will address these issues and restore confidence in its leadership.