Investor Ross Gerber says Tesla stock is plummeting due to Elon Musk’s numerous incomplete projects

Tesla stock is currently experiencing a downturn due to the presence of multiple unfinished projects within the company, as explained by investor Ross Gerber. Tesla, under the leadership of Elon Musk, has been facing various challenges in the past year, including increasing competition from companies like BYD in China. In response to this competition, Tesla has implemented substantial price cuts to some of its models in an effort to maintain its market share.

Despite selling 60,365 vehicles in China last month, Tesla’s lowest monthly sales in the country since December 2022, overseas competition remains a significant concern for the company. This competition has forced investors to reevaluate Tesla as more of a hardware company rather than a software company, focusing on traditional strategies to boost demand.

One of the critical unfinished projects within Tesla is its full self-driving technology, which is crucial for the company’s future growth. Additionally, there has been discussion about Musk potentially moving AI projects away from Tesla unless he achieves a 25% ownership stake in the company, which has been met with criticism from industry experts like Gerber.

While Gerber has been vocal in his criticisms of Musk’s leadership, other Tesla investors have also expressed concerns. A group of 17 shareholders penned a letter to Tesla’s board in 2023, urging them to address Musk’s behavior, particularly in light of his recent takeover bid for Twitter.

On the stock market, Tesla’s shares dropped nearly 3% early Tuesday, trading around $183.15 per share. This decline has contributed to a 24% decrease in Tesla’s stock price since the beginning of the year, leading some to question whether the company can still be classified among the Magnificent Seven mega-cap tech stocks that have been driving the market’s performance.

As Tesla navigates these challenges, it will be essential for the company to address its unfinished projects and potential leadership issues to regain investor confidence and achieve sustainable growth.