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Investment firm Gerber Kawasaki's co-founder Ross Gerber thinks that Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk's new trillion-dollar pay package could invite lawsuits in the near future. Check out the current price of TSLA here. Elon Musk's Pay Package Is ‘Insanity,' Says Ross Gerber Taking to the social media platform X on Tuesday, the investor criticized the new pay package for Musk. "Obviously the pay package thing is insanity. Did anyone on the BOD [Board of Directors] actually negotiate with Elon? I doubt it," Gerber said in the post. He also added that this pay package could open doors to more "litigation if it passes." Gerber then questioned Musk's influence over Tesla's Board. "The tesla BOD is still not “independent” from Elon… another mess coming," he said. It's worth noting that recently, proxy advisory firm International Shareholder Services (ISS) opposed Musk's new pay package. For context, the ISS provides shareholders with advice on company votes. Despite ISS opposition, ARK Invest's CEO Cathie Wood reiterated her support for Musk's new compensation package. Wedbush Securities' investor and Tesla Bull Dan Ives also predicted that Musk's pay package would pass the vote and be approved during November's shareholder meeting. FSD's ‘Come To Jesus' Moment, Declining EV Sales In another post on X on Tuesday, Gerber also shared his thoughts on the upcoming Q3 earnings call on Wednesday. "We expect lots of ‘future’ talk to try to get investors to focus on Cabs and robots so as not to look at the deteriorating EV business," Gerber said, highlighting Tesla's poor sales this year. On Full Self-Driving, Gerber predicted that a "come to Jesus" moment for the technology was coming soon. "If they don’t get to level 4-5 this year then what?" Gerber asked. Tesla's FSD system has been in the National Highway Traffic Safety Administration's (NHTSA) radar, with the regulator investigating multiple incidents of traffic violations as well as reports of accidents involving vehicles on the FSD system. The investigation affects over 2.88 million Tesla vehicles. Elon Musk Defends CEO Role The comments come as Musk defended his role as the CEO of Tesla, outlining that Tesla was worth more than all of its competitors in the industry. Tesla's market capitalization currently stands close to $1.4 trillion. Its three biggest rivals by market capitalization, Toyota Motor Corp (NYSE:TM), Xiaomi Corp (OTC:XIACF) (OTC:XIACY) and BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF) have a combined market cap of close to $540 billion. Tesla scores well on Momentum, Quality and Growth metrics, but offers poor Value. Tesla also offers a favorable price trend in the Short, Medium and Long term. For more such insights, sign up for Benzinga Edge Stock Rankings today! Check out more of Benzinga's Future Of Mobility coverage by following this link. Photo Courtesy: Photo Agency on Shutterstock.com Read Next:
