A key Tesla investor is calling for Elon Musk to step down as CEO of the company unless he leaves his role focusing on reducing the federal government. Ross Gerber, a long-time Tesla supporter, told Sky News that Musk has become too “divisive” and distracted, especially with his leadership role in the Department of Government Efficiency.
Gerber explained that Musk’s actions, including cutting federal agencies, have caused backlash and protests against Tesla, with some urging people to sell their cars.
“I think Tesla needs a new CEO, and I decided today I was going to start saying it, and so this is the first show that I’m saying it on,” Gerber said.
He added, “It’s time for somebody to run Tesla. 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 and be the CEO of Tesla and give up his other jobs, or he should focus on the government and keep doing what he is doing but find a suitable CEO of Tesla.”
Gerber’s comments come as Tesla faces challenges. The company’s market value has fallen by more than $800 billion since December, and its stock dropped another 4 percent on Tuesday. The demand for electric cars seems to be slowing, especially with rising competition from cheaper Chinese alternatives. Investors are also concerned about the impact of ongoing trade issues, particularly with President Donald Trump’s policies.
Gerber believes that Musk has spread himself too thin since buying Twitter in 2022 and that his involvement in politics and controversial social media posts are damaging Tesla’s reputation.
“The company’s reputation has just been destroyed by Elon Musk,” Gerber said. “Sales are plummeting so, yeah, it’s a crisis. You literally can’t sell the best product in the marketplace because the CEO is so divisive.”
This sentiment is shared by other Tesla supporters. Dan Ives, managing director at financial firm Wedbush and a strong Tesla backer, wrote in a note to investors that the company is facing a “brand tornado crisis.” Ives said the damage to Tesla’s brand has spread worldwide and is now a major issue for the company.
On Thursday, Tesla announced it was recalling 46,000 Cybertrucks due to a problem with panels that may detach while driving.
Protests against Tesla are also growing. Organizers are planning their largest protest yet on March 29, with 500 demonstrations at Tesla showrooms across the globe. In Canada, more than 375,000 people signed a petition calling for Musk’s Canadian citizenship to be revoked because of his involvement in Trump’s trade policies.
Musk responded to the protests by calling those who oppose him “deranged” and accusing them of wanting to hurt him and Tesla because he’s trying to eliminate waste and corruption in the government.
“Tesla and Musk are facing a defining chapter in their future,” Ives said. “How Musk handles this next few months will be crucial for Tesla’s long-term growth.”
Ives concluded, “Investors need to see Musk take a step back and balance his Doge and Tesla CEO roles.”
