Ross Gerber Calls for Elon Musk to Step Down as Tesla CEO: Is Tesla in Crisis?
Tesla’s Struggles and Gerber’s Explosive Warning
In a bold and dramatic move, Ross Gerber, one of Tesla's earliest investors, has openly demanded that Elon Musk step down as the company’s CEO, unleashing a storm of controversy.
Speaking to Sky News' Business Live, Gerber claimed that Musk's growing list of distractions, particularly his role in the Trump administration’s new government department, has left the electric car giant teetering on the brink of disaster.
As Tesla’s market value continues to plunge and its reputation crumbles, Gerber’s call for Musk to either refocus on Tesla or leave has sent shockwaves through the investment community. Is Tesla on the verge of collapse, or can Musk salvage the company from the chaos?
Ross Gerber
Musk’s Government Role Under Scrutiny
Gerber pointed to Musk’s recent role as an adviser to former President Donald Trump, particularly his leadership of the newly established Department of Government Efficiency (DOGE). Musk's position within the government has stirred public backlash, particularly over controversial plans to implement deep cuts to federal government staff.
According to Gerber, these distractions are damaging Tesla’s performance and public image. Musk’s growing political ties and involvement in government activities are now seen as a significant issue by Tesla investors.
Tesla's Financial Decline
Tesla's market value has taken a massive hit in recent months, with a staggering loss of over $800 billion since December. The company’s stock price has dropped by 4% in recent trading, further fueling concerns among investors. Despite Tesla’s leadership in electric vehicle (EV) innovation, challenges abound.
A slowdown in electric car demand in key Western markets, coupled with growing competition from affordable Chinese EVs, has hurt Tesla’s bottom line. Additionally, the ongoing trade tensions sparked by the Trump administration’s policies have raised production costs for Tesla, adding more strain on the company’s financial stability.
Gerber's Call for Leadership Change
In the interview, Gerber made a clear statement: “Tesla needs a new CEO.” He argued that Musk's attention has been spread too thin since his purchase of Twitter (now X) in 2022. According to Gerber, Musk’s activities outside Tesla—whether managing X or handling government duties—are taking a toll on the company.
Tesla, Gerber suggests, needs a leader who can focus solely on the company’s growth and innovation. He proposed that Musk either return full-time to Tesla or step down and focus on his government role, allowing for the appointment of a new CEO.
Investors Express Concern Over Tesla's Future
Gerber revealed that his concerns about Tesla’s leadership prompted him to sell off a significant portion of his shares in recent months. He believes that Musk’s divisive public persona—largely shaped by his social media activity and political affiliations—is harming Tesla’s brand.
As Gerber put it, “The company’s reputation has just been destroyed by Elon Musk,” which he feels is the primary reason for the company’s plummeting sales. With the electric vehicle market growing more competitive, investors are increasingly worried about Musk’s ability to lead Tesla through this challenging period.
Is Tesla’s Future at Risk?
Tesla remains a leading player in the electric vehicle market, but as Ross Gerber points out, the company’s success may be at risk due to its CEO’s divided attention and controversial public image. The challenges Tesla faces are multifaceted, from declining demand and fierce competition to rising costs linked to trade tensions.
Investors are watching closely, and many are growing more concerned with each passing day about whether Musk can successfully navigate the company through these turbulent times. While Tesla’s products remain some of the best in the market, the company’s future will depend on strong leadership and a unified direction—something that, according to Gerber, is currently lacking.
What’s Next for Tesla?
Tesla is at a crossroads. As the company faces increased competition and declining market value, the question remains: Can Elon Musk continue to lead Tesla effectively? While the electric vehicle giant has seen tremendous success in the past, its future will likely depend on a renewed focus and decisive leadership.
With growing concerns from investors like Ross Gerber and an uncertain market ahead, it may be time for Musk to reassess his role at the company. Whether Tesla will find a new leader or Musk will reassert his focus remains to be seen. What’s clear is that Tesla’s future is tied to overcoming the challenges it faces today.
