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Investing in Tesla (NASDAQ: TSLA) is investing with Elon Musk and if someone is not comfortable with who he is, then they should not be an investor, says Wealth Investment Management CEO Ross Gerber. In a recent interview with Yahoo Finance, Gerber talked about Tesla, Elon Musk, and taxes.
Musk is very respectful of the Tesla shares he owns and never sells them for a profit. However, now he must sell them, which is connected with the stock option and the payment of the associated taxes. After the start of the sale of shares, their value declined, which led to a decrease in the company's market capitalization. Therefore, this topic aroused the particular interest of the host of Yahoo Finance.
It should be kept in mind that Musk's sale of shares was not a big surprise to those following the company's updates. Not so long ago, at CodeCon 2021, the head of Tesla already said that he would have to sell his shares due to expiring options. He also mentioned that he would pay at a tax rate of 53%.
Just before starting his sale of shares, Musk also conducted a poll on Twitter to get the opinion of his followers—a lot of whom are Tesla shareholders—on how best to proceed. According to the poll, the majority of those who voted supported the sale of 10% of shares. While many skeptics were critical of this, they did not understand what the head of the company actually wanted to show by this.
“I pay a 53% tax rate, so I find it incredibly insulting to have Biden saying I’m not paying my fair share. Now, in Elon’s case, because he doesn’t earn an income, there was a lot of criticism that he wasn’t paying his fair share. So I think he's showing the effect on the capital markets if there was something like a tax on capital," Gerber said. "It would be devastating to the stock market to have founders across every business in America having to sell stock to pay Bernie [Sanders] standards as tax. So, there’s a bigger thing that Elon’s showing is that it costs investors $200 billion for Elon to pay a few billion dollars in taxes," he continued.
Musk's tweets and statements, in addition to jokes, often have a special meaning and idea, which at first glance is not so easy to discern. Anyone who invests in Tesla is well aware of the bright and multifaceted personality of the head of the company, whom is often covered in the media. Therefore, he/she must ultimately make an important decision once and for all. If an investor feels comfortable with Elon Musk and who he is, then he/she can invest without worrying about stock volatility. If the personality of the head of the company, his actions, and statements make the investor constantly under stress, then he/she should not invest in Tesla.
“If you invest with Elon Musk and you’re not comfortable with who he is, you shouldn’t be an investor. He’s made us a fortune, you know,” Gerber said. “I think it’s volatile stock because you’re investing with Elon. And I call it 'Elon risk, ’but it creates opportunities for people who can see the point of what he’s really trying to say,” he continued.
“When you invest with Elon Musk, you’re investing with Elon Musk, and if you’re not comfortable with who he is, you shouldn’t be an investor,” @GerberKawasaki Wealth Investment Management CEO Ross Gerber says. “I call it Elon-risk.” pic.twitter.com/NZTcJWokma
— Yahoo Finance (@YahooFinance) November 15, 2021
As an investor, Gerber assesses the rising and falling price of Tesla shares as follows: when the share price was at $1,250, he felt that it was getting away from him, but when the price fell back to $1,000 again, he was happy that he got the opportunity to buy more shares again. Gerber emphasized that he believes in further growth in value, and in an amazing run of the company next year. This should be the main catalyst when buying the manufacturer’s shares, so that price fluctuations do not cause great fear in the investor.
© 2021, Eva Fox | Tesmanian. All rights reserved.
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Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.
About the Author
Eva Fox
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.
