EV Maker's Board Seat Sought by Tesla Investor Ross Gerber

It was reported Thursday that Ross Gerber, a powerful shareholder in Tesla Inc., informed the company that he intends to seek a seat on the board, formalizing a campaign aimed at reining in Elon Musk as the company's CEO. 

‍

Trade Algo obtained a copy of Gerber's letter to Brandon Ehrhart, Tesla's new general counsel and corporate secretary, in which Gerber disclosed his intentions. He sent the letter on Tuesday. Earlier this month, investors from Gerber Kawasaki, the wealth management company he runs, had revealed plans to create the fund during an online discussion. 

‍

It was not possible to get a response from Musk or Tesla representatives immediately after contacting them. 

‍

Trade Algo obtained data from the company's sources indicating that the firm owned about 440,000 Tesla shares as of Dec. 31, representing ownership of 0.01% of Tesla. There is also a pledge Gerber has received from one of the largest individual investors in Tesla, Leo KoGuan, who has also been holding some of his own shares privately and has told Trade Algo he had a pledge from him.

‍

According to Gerber, if he is successful in getting a seat on the board, he intends to be a "friendly activist" with a number of goals that he wishes to accomplish. His priorities include succession planning, reviewing compensation agreements, and dealing with a perceived conflict of interest on Musk's part by running both Tesla and Twitter at the same time.