Tesla Bull Ross Gerber Nearly Divests Stake In Smaller Rival: Management Execution Hasn't Met Our Expectations'

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Ross Gerber, the co-founder of Gerber Kawasaki Wealth and Investment Management and a prominent Tesla, Inc. TSLA bull, said Tuesday that he nearly cashed out of another electric vehicle maker — Arcimoto, Inc. FUV.

Eugene, Oregon-based Arcimoto manufacturers two- and three-wheeled electric vehicles.

“We’ve had to take a small step back from our small investment in Arcimoto for the time being,” Gerber said on Twitter.

See also: Arcimoto Appoints Jesse Fittipaldi As Interim CEO

Still Loves ‘Product And Mission:’ Gerber had taken a stake in Arcimoto in early 2021 through the AdvisorShares Gerber Kawasaki ETF GK.

The fund manager blamed the action on management’s execution not meeting his expectations. “We hope they can get back on track as we love the products and mission,” he said.

The Sale: Tesla is GK ETF’s top holding and it accounts for 11.9% of the fund. The firm’s 13F for the June quarter revealed that it held 194,650 shares of Arcimoto, valued at $636,000. Updated holding details as of Aug. 23 showed that the stake was trimmed to 722 shares, giving it a portfolio weight of 0.01%.

Arcimoto shares have come off notably from $36.80 in early 2021 to a little over $2 currently. The company has not been able to produce as many vehicles as it would have desired amid the supply constraints and it is also cash-strapped.

Commenting on Gerber’s announcement regarding the divestment, Arcimoto founder Mark Frohnmayer thanked Gerber for the “long run” and extended an invitation to visit the facilities and team.

“Thanks for kicking the tires,” Frohnmayer said. “This is a long run, and open invite if you ever want to come up to Eugene, see the facilities for yourself and meet the team. Onward and upward.”

Price Action: Arcimoto shares closed Tuesday’s session down 2.17% at $2.25, according to Benzinga Pro data.

Photo: Courtesy of Arcimoto

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Image and article originally from www.benzinga.com. Read the original article here.