Investment firm Gerber Kawasaki‘s co-founder, Ross Gerber, has suggested that Tesla Inc. CEO Elon Musk should buy more equity in the EV giant. This comes after Musk’s recent $1 billion stock purchase, which led to the stock surpassing the $420 price mark briefly.
Why Take From Shareholders, Asks Ross Gerber
Gerber took to social media platform X to share his thoughts on the stock rally following Musk’s purchase. He questioned why Musk doesn’t just buy the other 12% of the company he wants instead of taking it from shareholders. Musk currently has a 12.8% stake in Tesla, comprising 413 million shares, and purchasing another 12-13% stake would give him more control over the company.
“If he can afford to buy the stock why doesn’t he just buy the other 12% he wants instead of taking it from shareholders? Just asking for a Tesla friend.”
Gerber also shared another post, which could be seen as a sarcastic comment on Musk’s purchase.
“Nice to see Tesla get back to even on the year, imagine how high the stock would go if Elon bought 12% more? Then stockholders win… seems more fair to shareholders for the second richest person ever.”
Tesla’s Q3 Sales Rush, Other Insider Purchases
The comments follow a surge in stock for Tesla after reports that the company would be beating analyst estimates of deliveries in the third quarter. This is largely driven by a sales rush to avail the $7,500 Federal EV credit before the September 30 deadline. However, experts like Gerber have suggested that the good news from the delivery estimates could be short-lived as Q4 delivery figures for the company remain uncertain.
Musk’s billion-dollar stock purchase was the highest among other market open Tesla insider purchases over the years since it first went public in 2010.
Tesla’s Gigafactory Production Boost Amid Falling Sales
The Gigafactory Berlin has announced an upward shift in production after Tesla cited increased sales and positive signals from multiple regions. However, despite the claims and the shift, Tesla’s sales have fallen, with the company’s U.S. EV market share falling below 40% for the first time since 2017. Tesla also discontinued the most affordable Cybertruck trim in the U.S.
Key Takeaways
- Ross Gerber suggests that Elon Musk should buy more equity in Tesla instead of taking it from shareholders.
- Musk’s recent $1 billion stock purchase led to a surge in Tesla’s stock price.
- Tesla’s Q3 sales rush is driven by a sales rush to avail the $7,500 Federal EV credit before the September 30 deadline.
- The company’s Gigafactory Berlin has announced an upward shift in production despite falling sales.