Elon Musk may not be running Tesla like traditional CEOs, according to Ross Gerber, president of Gerber Kawasaki Wealth and Investment Management. Gerber stated that while Musk sets direction for the company, he is not in charge of its day-to-day operations. Gerber believes Tesla shareholders are aware that Musk works closely with President-elect Donald Trump.
The two have a close relationship, with public praise and significant campaign donations from Musk to Trump’s campaigns totaling over $132 million. As part of this connection, Musk was appointed as the head of the newly created Department of Government Efficiency alongside Vivek Ramaswamy.
This tie-up has led to an improvement in Tesla’s stock price, rising 74% since Election Day and outpacing the S&P 500’s nearly 5% gain. Gerber predicts that 2025 will be a crucial year for Tesla, but warns that if the new team fails to deliver results, the company’s valuation may suffer.
Only three people are listed as executive team members on Tesla’s investor relations page: Musk, Tom Zhu, and Vaibhav Taneja. Gerber believes it is essential for this new team to prove themselves in the next 12-18 months if they want to justify Tesla’s high valuation.
Source: https://finance.yahoo.com/news/tesla-investor-elon-musk-is-working-more-for-trump-and-less-for-tesla-154454531.html