Electric vehicle maker Tesla is having a down year, failing to meet its sales goals and being under immense pressure from competition. This has taken a toll on the once-flying company’s stock, which is currently close to 14% down year-to-date.
Tesla’s struggles and the erratic behavior of its outspoken CEO, Elon Musk, are now making even the company’s most determined backers question their position. One of them is early Tesla investor and EV maker’s longtime backer Ross Gerber, the CEO of financial planner Gerber Kawasaki.
In a recent interview with Business Insider, Gerber said that his clients are pleading with him to exit the company’s position in Tesla. He already started meeting those requests, selling half of Gerber Kawasaki’s Tesla holdings.
Gerber says his firm currently owns $60 million in Tesla shares, and he intends to sell them in the next six months if the company doesn’t complete a turnaround.
“If you’re not making any money and you’re not doing what needs to be done to make the company money or your company do well, I have to move on. It’s just, that’s the way,” Gerber told Business Insider.
Gerber added that the company has to put more focus on advertising and improving its sales in order for its stock not to be considered overvalued.
“I see the stock as really overvalued right now because I don’t think they make any of their numbers,” he explained. “I don’t see how they sell more cars with this current strategy.”
Tesla climbed almost 4% on Friday to close at $214.11 per share. The company is 18.67% down from its year-high $263.26 in early July.