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Investor Ross Gerber, of Gerber Kawasaki Wealth and Investment Management, is calling out Tesla Inc.’s (NASDAQ:TSLA) priorities, amid reports of digital advertising campaigns being run to promote CEO Elon Musk’s controversial $900 billion compensation plan. Promoting Pay Package Despite Dwindling Sales On Wednesday, in a post on X, Gerber said he finds it amazing that an automotive company that is currently “struggling to sell cars” is now spending money on advertising to “sell a pay package.” Gerber’s remark follows Tesla’s online advertising campaigns, reportedly highlighting Musk’s value to the company, ahead of its annual shareholders meeting on Thursday, where the crucial vote on his pay package is set to take place, according to a report by BBC News. See Also: Tesla’s Head Of Business Development Says EV Giant Is Building Full Autonomous Stack: ‘Waymo Needs Vehicles…’ This comes during a period of dwindling sales across its key markets in Europe and China, with Musk’s political involvement weighing on the company. A recent report suggests Musk's vocal right-wing political activism, marked by a $250 million contribution to President Donald Trump's campaign, before his brief stint heading the Department of Government Efficiency this year, has cost Tesla close to 1 million car sales in the U.S. alone. Investors Divided Over Musk’s Pay Package Several prominent analysts and investors have voiced sharply contrasting views on Musk's proposed pay package and what it could mean for Tesla's future. Investor Cathie Wood of Ark Invest has supported the compensation plan, calling Musk “the most productive human being on earth,” who is currently involved in tackling some of the world’s most challenging problems. She added that the package was a “win-win for all of us.” Joining Wood’s endorsement is Dell Technologies Inc. (NYSE:DELL) founder Michael Dell, who highlighted that Musk’s stock award was tied to ambitious market capitalization and operational goals. “If he falls short, he gets nothing. If he succeeds, shareholders will win big through unprecedented value creation,” he said. Norway’s sovereign wealth fund, the $2.1 trillion Norges Bank Investment Management, is among the most prominent investors to oppose the plan. Earlier this week, the fund with a 1.12% stake in Tesla announced that it will be voting against Musk’s pay plan. In a statement, the fund said, “While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk.” Gerber, who was once a prominent Tesla bull, has been a vocal critic of the plan, calling it “absurd,” while criticizing the company’s board of directors for prioritizing Musk’s interests over the company and its shareholders. Tesla Shares Soar Ahead of Key Vote Shares of Tesla were up 4.01% on Wednesday, closing at $462.07, and are up 0.11% overnight, ahead of the company’s annual shareholders meeting and the key vote on Musk’s compensation. The stock scores high on Momentum and Quality in Benzinga’s Edge Stock Rankings, with a favorable price trend in the short, medium and long terms. Click here for deeper insights into the stock, its peers and competitors. Photo: DANIEL CONSTANTE from Shutterstock Read More:
