Ross Gerber Invokes Netflix, Says Mercedes Made A 'Blockbuster' Error By Letting 10% Tesla Stake Slip Away
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Ross Gerber, co-founder of Gerber Kawasaki Wealth & Investment Management, agreed Tuesday with a social media post arguing that Mercedes-Benz Group AG’s (OTC:MBGAF) (OTC:MBGYY) $50 million investment for nearly 10% of Tesla Inc. (NASDAQ:TSLA) in 2009 would be worth about $130 billion today if the German automaker had held the stake.
Gerber Compares Daimler Mistake To Blockbuster
"This is true. When we first bought Tesla in 2013 we thought Mercedes would just buy them out," Gerber wrote on X. "This Mercedes mistake is as bad as the blockbuster Netflix error."
His post quoted a Tesla Tracker account saying Daimler's 2009 Tesla stake would now be worth $130 billion, or roughly a 2,600-fold return.
Daimler Sold Tesla Stake Years Too Early
Tesla said in May 2009 that Daimler AG, which changed its name to Mercedes-Benz Group AG in early 2022, had acquired a nearly 10% stake in the company, deepening an existing partnership between the legacy automaker and the electric-vehicle startup. The deal came before Tesla became public and before the Model S turned it into a mainstream investor story.
Reuters reported that Daimler sold its remaining 4% stake in Tesla in 2014, booking a $780 million windfall. The sale gave Daimler a large profit but left behind an even larger opportunity cost as Tesla later became one of the world's most valuable automakers.
Legacy Automakers Missed Early EV Upside
Tesla's current market value is about $1.5 trillion, according to Benzinga Pro, meaning a 9% to 10% holding would be worth roughly $136 billion to $150 billion before accounting for dilution, structure or any earlier partial sales.
Gerber, notably, has made the comparison before. A May 2023 report reveals that he called Daimler's decision "Worse than Blockbuster not buying Netflix early."
The episode also fits a broader pattern. A Reuters report from 2017 notes that Toyota Motor Corp. (NYSE:TM) bought about 3% of Tesla for $50 million in 2010 and later sold all its shares. The Japanese automaker began divesting its shares in 2014 and by the end of 2016, had sold off its remaining Tesla holdings as their joint-development deal expired.
Benzinga Edge Rankings show that Tesla stock scores well on the Growth and Quality metrics. It also offers a favorable price trend in the Short and Long Term.
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