Ross Gerber Critiques Tesla Chair Robyn Denholm for Neglecting Shareholders

Prominent Tesla Inc. investor Ross Gerber has voiced stern criticisms against Tesla's Board Chair Robyn Denholm, alleging that she has failed to represent the interests of shareholders while accumulating significant wealth from her role.

What Happened: On social media platform X, Gerber, who is also the CEO of Gerber Kawasaki Wealth and Investment Management, made a statement criticizing Denholm. He stated, "Robyn 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."

This backlash follows a Reuters report highlighting that Denholm’s compensation since her appointment to the board in 2014 has reached around $682 million in cash and stock, out of which she has already divested approximately $532 million worth of Tesla stock.

Reuters characterized the 61-year-old Denholm as "the chief defender" of CEO Elon Musk‘s well-known $56 billion pay package, which has been subject to legal disputes. Gerber emphasized that her large compensation raises questions about her commitment to the broader group of Tesla investors.

Gerber's comments come during a tumultuous period for Tesla, which has seen an increase in demonstrations at its showrooms nationwide. These protests have been partially driven by Musk’s involvement in former President Donald Trump‘s political actions. Recently, Gerber shared a video of protests outside a Tesla establishment in Santa Monica, featuring his 9-year-old child expressing gratitude for not owning a Tesla.

Importance of the Critique: As a long-term investor, Gerber has progressively voiced his concerns about Tesla's stock, declaring it remains overpriced even after experiencing a nearly 50% decline since mid-December. He noted, "There’s this game that is happening now where the fundamental story has to be revalued,” pointing out that Tesla’s forward price-to-earnings ratio is still more than three times that of the S&P 500 average.

Gerber is not alone in his criticism. Dan Ives, an analyst at Wedbush Securities, stated that "Tesla investors are seeing patience wear thin" regarding Musk’s divided focus, noting the lack of evidence of Musk at any Tesla factory or manufacturing site in the last two months.

In a notable turn, Tesla reported its first-ever annual sales decline in 2024, despite Musk’s recent commitment that Tesla plans to double its vehicle production in the U.S. within the next two years.

Tesla, Investment, Shareholders