Challenges for EV maker Tesla (TSLA) in 2024 could be exacerbated by CEO Elon Musk's many responsibilities as head of several companies and his remarks made on X.com.

Gerber Kawasaki Wealth & Investment Management CEO Ross Gerber sits down with Yahoo Finance Live to talk about the lasting impact of Musk's behavior on Tesla's performance.

"If Musk's behavior continues to get more and more extreme, that is a risk to Tesla sales," Gerber, a long-time Tesla bull, says. "But the bottom line... it's the best vehicle on the road, it's the best value on the road. So, consumers literally have to buy a lesser car because they don't like Elon."

For more Yahoo Finance coverage of Tesla:

Morgan Stanley, Starbucks, Tesla: 2024 leadership in focus

Tesla: Is Elon Musk too distracted by his other companies?

Catalysts for Tesla stock in 2024

Tesla is 'the AI company': Analyst

Musk's social commentary hurting Tesla, other brands: Bill George

Click here to watch the full interview on the Yahoo Finance YouTube page or you can watch this full episode of Yahoo Finance Live here.

This post was written by Luke Carberry Mogan.

Video Transcript

- We were just talking with a prior guest on the risk to Tesla.

Their financials, their stock price because of some of just the views he has taken in terms on social issues.

How concerned are you that next year his views start to hurt the demand and hurt the stock price of Tesla?

ROSS GERBER: Well, first of all, shout out to George.

You know, I read his Tesla and his work.

You know, he's a great analyst and a great person to follow if you're looking for Tesla data.

And I think his point about earnings being the driver of stock prices is ultimately what's going to determine Tesla's success next year.

So the fact that Elon has, you know, become-- and I don't think it's equally a similar controversy of smoking weed on Joe Rogan to making severely anti-Semitic remarks.

You know, these are different levels of-- or telling everybody to F off, you know.

So I think if Musk's behavior continues to get more and more extreme, that is a risk to Tesla sales.

But the bottom line, as George pointed out, it's the best vehicle on the road, it's the best value on the road.

You know, so consumers literally have to buy a lesser car because they don't like Elon.

And so I don't know if consumers are going to do that or not.

I know certain consumers are for sure.

But there might be many others that just simply want the best car.

- Yeah.

Balancing whether you want to continue to buy from a figure that perhaps goes increasingly divisive versus just saying, all right.

I'm able to just kind of take the juice and ultimately just keep moving and be comfortable with my car purchase, at least at this point in time.

ROSS GERBER: You know, Tesla is Tesla and Elon is Elon.

And I think the best thing Tesla can do is continue to differentiate its brand, you know, as Tesla.

And that's why-- - Haven't they intertwined so much of that brand with Elon, though?

ROSS GERBER: Well, it's hard.

You know, it's really hard because Elon is basically the face of the brand and the voice of the brand.

And they've been-- if you notice on Twitter, Tesla's been tweeting more as Tesla, they've been defending themselves more.

We've seen more attempts at advertising.

And I think if Tesla goes full in on advertising and continues to build its brand, Elon's effect will be less and less damaging to Tesla overall.

But the bottom line is, you can't diminish the effect of the damage that he's caused.

- Ross, let's talk some numbers here.

Because we were showing in a prior segment how the earnings estimates for next year for Tesla have continued to fall really throughout the year, but most notably, at least according to Yahoo Finance data, over the past 90 days.

Can this stock continue to work higher next year if earnings estimates continue to come down and Tesla does have some product miscues?

ROSS GERBER: Well, I don't know about product miscues.

I mean, they're going to struggle to put Cybertrucks out next year but that's expected.

In my mind, it's a launch year and it's an incredible new technology and product.

That said, I like that they've lowered expectations this much because it gives Tesla an opportunity to beat.

So if they can actually increase margins by lowering costs and/or not have to lower prices because demand picks up.

Maybe we get lower interest rates and maybe Tesla beats earnings over the course of the year.

And I that's what a lot of the analysts who have price targets at $300 or $350 are thinking that Tesla might earn closer to $5 than, let's say, the less than $4 that's expected.

And if that's the case, a $300 price target does look reasonable for Tesla.

But right now $4 is-- where I'm at and, you know, so Tesla is a fully valued stock.

But, you know, we're long term investors.

So we're very bullish on Tesla's long term.

And it is an AI company.

It's absurd to not give it credit for where it is.