Veteran investors, including Ross Gerber, co-founder of Gerber Kawasaki, and Dan Ives of Wedbush Securities, have criticized Elon Musk’s return to politics and questioned the Tesla Inc. Board of Directors as the company’s stock declined almost 7% in the last 24 hours.
What Happened
Gerber took to social media to slam the Tesla Board of Directors, calling it “a joke” and stating that they are “Elon vampires sucking the blood of Tesla equity.” He also criticized Musk’s proposed America First political party, saying that no one is in favor of it.
Reactions from Investors
Ives shared his thoughts in an interview, stating that Musk’s return to politics is “the exact opposite of where you wanna see him at.” He added that Musk risks becoming “a foe” for Trump and the Republican Party, which is something a Tesla investor would not want to see. Ives conceded that Musk’s political activities have put Tesla stock under pressure.
Concerns about Tesla Governance
Ives said, “You cannot have Musk start his political party and remain CEO of Tesla.” He also stated that the Tesla Board will have to take some sort of action, referencing Musk’s involvement with DOGE in the past.
Why It Matters
The criticism follows Musk’s doubling down on his political ambitions as tensions between the billionaire and Trump continue to rise. Musk’s decision to found his political party has been slammed by experts, including former DOGE advisor James Fishback, as well as Trump, who called the idea a “train wreck.”
Support from Unlikely Sources
However, Musk has also found support from users on Chinese social media, who rallied behind the billionaire as his feud with Trump intensified.
Current Market Situation
Tesla’s stock has been under pressure due to Musk’s political activities. The company’s governance has been questioned, and investors are concerned about the impact of Musk’s political ambitions on the company’s performance.
Conclusion
Elon Musk’s political ambitions have sparked controversy and criticism from veteran investors and experts. As the situation continues to unfold, it remains to be seen how Musk’s political activities will affect Tesla’s governance and stock performance.
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