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Renowned Tesla investor Ross Gerber has expressed his increasing bullishness on the future prospects of the electric vehicle (EV) company. With a substantial $74 million stake in Tesla stock, Gerber cites several factors that have led to his renewed optimism.
1. Renewed Confidence: Tesla investor Ross Gerber has become increasingly bullish on the company's future, driven by positive changes he noticed during Tesla's annual meeting. Witnessing Elon Musk's re-energized presence and enthusiasm, Gerber believes that the CEO's refocused vision bodes well for Tesla's prospects.
2. Positive Developments: Gerber points to various positive developments that have contributed to his growing confidence in Tesla. These include updates on upcoming vehicles, advancements in Tesla's robot technology, and Musk's charismatic CNBC interview. These factors have enhanced Tesla's public relations and bolstered Gerber's belief in the company's potential.
3. Expansion into Advertising and Customer Experience: One notable announcement from the annual meeting was Tesla's decision to test out advertising. Gerber sees this as an opportunity to further raise brand awareness and attract new customers. Additionally, Gerber emphasizes the need for improved customer service and suggests the appointment of a dedicated "quality and service czar" to enhance the overall user experience.
Tesla's Re-energized Leadership:
Gerber observed a significant change in Tesla's annual meeting, which took place recently. He noticed that Elon Musk, Tesla's CEO, exhibited a renewed sense of energy and enthusiasm during the event. According to Gerber, witnessing Musk's happiness and connection with Tesla's loyal community reaffirmed his positive outlook.
Musk's Refocused Vision:
Having previously expressed concerns about Musk's focus being diverted by various ventures, Gerber believes that recent developments, such as the appointment of Linda Yaccarino as Twitter's new CEO, indicate that Musk is now directing more attention back to his EV company. Gerber views this as a promising sign for Tesla's future.
Positive Investor Takeaways:
Gerber highlighted key takeaways from the annual meeting that bolstered his confidence. These include insights into a future $25,000 vehicle, updates on the highly anticipated Cybertruck, and advancements in Tesla's robot technology. Furthermore, Gerber noted Musk's personable and charismatic demeanour during a CNBC interview, which contributed to positive public relations for the company.
Shifting Investment Outlook:
Gerber's investment approach shifted based on these positive developments. Previously a slight net seller in the first quarter, Gerber now holds a more bullish stance on Tesla. His firm's 13F filings show a change from 440,000 to 420,000 shares held. Gerber emphasizes that owning Tesla in one's portfolio is now a more favourable decision, with Musk refocused on the company's growth.
Tesla's Expansion into Advertising:
One unexpected announcement at the shareholder meeting that caught Gerber's attention was Tesla's decision to venture into advertising. This move surprised many, and Gerber believes it could significantly increase brand awareness. Tesla's compelling technology demonstration videos already attract attention, and advertising will further amplify their reach.
Focus on Customer Experience:
While Tesla excels in technological advancements, Gerber suggests the need for improvement in customer service. He advocates for a dedicated "quality and service czar" to enhance the user experience and address customer needs more effectively. Gerber emphasizes that, given Tesla's vast user base, providing exceptional human interaction alongside its technical prowess is essential for long-term success.
