ONE of Tesla’s earliest investors has urged Elon Musk to step down as the company’s chief executive unless he relinquishes his new government role.
Ross Gerber, a prominent Tesla shareholder, told Sky News Business Live that Musk’s growing involvement in politics had made him too “divisive” and distracted from the electric carmaker’s operations. He pointed to Musk’s recent appointment as head of the Trump administration’s Department of Government Efficiency (DOGE), a role that has sparked public protests over planned deep cuts to federal government staff.
Gerber expressed concerns about Tesla’s future under Musk’s leadership, stating that the business had been neglected for too long. He argued that Musk must either return full-time to Tesla or find a new CEO to run the company. “I think Tesla needs a new CEO, and I decided today I was going to start saying it,” he said. “The business has been neglected for too long. There are too many important things Tesla is doing, so either Elon should come back to Tesla or he should focus on the government and find a suitable CEO.”
Stock Slump and Market Challenges
Tesla’s financial troubles have deepened in recent months, with the company’s market value plummeting by over $800 billion since December. Shares fell another 4% in US trading on Tuesday, continuing a downward trend that began before Donald Trump took office and reignited tensions in global trade.
The company is facing multiple challenges, including declining demand for electric vehicles in key Western markets, even as Tesla implements aggressive discounts to stimulate sales. Meanwhile, competition from cheaper Chinese EVs is eroding its market share, and the potential for increased costs due to Trump’s trade war has heightened investor concerns.
Gerber, who has offloaded a substantial number of Tesla shares in recent months, described the situation as an “absolute crisis.” He also criticized Musk’s controversial public persona, arguing that his social media activity and political associations have tarnished Tesla’s reputation.
“The company’s reputation has just been destroyed by Elon Musk,” Gerber said. “Sales are plummeting. You literally can’t sell the best product in the marketplace because the CEO is so divisive.”
Calls for Leadership Change
Since acquiring Twitter–now rebranded as X–in 2022, Musk has juggled multiple roles, including his leadership at SpaceX and involvement in AI development. Gerber emphasized that despite Tesla’s strong product lineup, Musk’s divided focus has hindered the company’s growth.
With investors increasingly anxious about Tesla’s future, pressure is mounting on Musk to clarify his priorities–or step aside to allow new leadership to stabilize the company.
