Ross Gerber Critiques Mercedes for Losing Tesla Stake, Compares to Blockbuster's Netflix Mistake
Ross Gerber Invokes Netflix, Says Mercedes Made A 'Blockbuster' Error By Letting 10% Tesla Stake Slip Away
Benzinga
Image: Benzinga
Ross Gerber, co-founder of Gerber Kawasaki Wealth & Investment Management, highlighted Mercedes-Benz Group AG's significant financial misstep in selling its nearly 10% stake in Tesla Inc. for $780 million in 2014. This stake, initially acquired for $50 million in 2009, could be worth approximately $130 billion today, drawing parallels to Blockbuster's failure to acquire Netflix.
- 01Mercedes-Benz Group AG sold its remaining 4% stake in Tesla in 2014 after initially acquiring nearly 10% in 2009.
- 02The $50 million investment in Tesla would be worth about $130 billion today, representing a 2,600-fold return.
- 03Ross Gerber previously stated that Daimler's decision was 'worse than Blockbuster not buying Netflix early.'
- 04Tesla's current market value stands at approximately $1.5 trillion.
- 05Other legacy automakers, like Toyota, also divested their Tesla shares early, missing out on significant gains.
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Ross Gerber, co-founder of Gerber Kawasaki Wealth & Investment Management, recently emphasized a major financial blunder by Mercedes-Benz Group AG regarding its stake in Tesla Inc. In 2009, Mercedes invested $50 million for nearly 10% of Tesla, a stake that could now be valued at around $130 billion, reflecting a staggering 2,600-fold return. Gerber likened this error to Blockbuster's failure to acquire Netflix, stating that it is as significant a mistake. Mercedes sold its remaining 4% stake in Tesla in 2014, realizing a profit of $780 million, but missing out on the immense growth of Tesla, which is now valued at about $1.5 trillion. This comparison highlights a broader trend among legacy automakers, as seen with Toyota Motor Corp., which also divested its shares in Tesla early, missing out on substantial gains. Gerber's analysis underscores the critical importance of strategic investments in the rapidly evolving electric vehicle market.
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