A well-known Tesla bull is running for the board, and a big investor is backing him
A well-known Tesla bull is running for the board, and a big investor is backing him :- Ross Gerber, a big shareholder and well-known Tesla bull, will run for a seat on the Tesla Board of Directors at a meeting in May.
The end of last year was a rough time for Tesla stock, which meant that the Tesla Board of Directors was under a lot of pressure. After the company’s stock price fell, many investors hoped that the Board would make changes to get the share price back under control. Even though the Board didn’t do anything, Ross Gerber, who told Reuters he plans to run, and a new group of investors have joined the Board because Tesla’s stock value keeps going up.
Gerber controls about 440,000 shares, which is a respectable amount. Gerber thinks he is qualified and can be a voice for change on the Board because he has been CEO of a wealth-management fund in California. He told Reuters that he wants to be a “friendly activist” who works to fix three main problems: public relations, customer service, and succession planning.
Two of Gerber’s worries are shared by a fair number of Tesla investors. Elon Musk, the CEO of Tesla, made the decision years ago not to have a communications or public relations office. This has divided opinions for years, with some praising the company’s innovative way to cut costs and others criticising its lack of transparency.
Customer service requires the same kind of long-term care. Even though the number of service stations is growing, mobile repair is growing all the time, and there have been many promises to make things better, many customers and investors are still unhappy with the way things are run.
Gerber’s most original idea may be succession planning, but he is not the only one who thinks about this. Elon Musk’s name and reputation are inexplicably tied to Tesla, which is a risky situation because nobody knows how the company or market would react if he left for any reason.
This brings us to the reason why Gerber is not the only one who is worried. KoGuan Leo, Tesla’s third-largest investor, tweeted his support for Gerber’s Board membership right after he said he wanted to run.
It’s not too hard to become a member of the Tesla Board, but Gerber has gotten around some of the rules. Usually, Tesla’s Nomination and Corporate Governance Committee chooses new board members. Then, at the annual Board meeting, they will have a chance to be on a ballot for a Board seat. Then, Tesla investors will be able to vote for each open board seat. The eight Board members serve for three years, and there is no limit on how many terms they can serve.
Gerber will, in a sense, put his ideas to the test at the Board meeting in May. Gerber has a good chance of getting his seat if enough Tesla investors, like Leo, agree with his concerns about Tesla. But with a Board leadership that has been in place for a long time and hasn’t had to deal with many problems, this may be easier to say than to do.
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