Tesla’s leadership is under scrutiny as one of its earliest investors, Ross Gerber, has publicly called for Elon Musk to step down as CEO unless he relinquishes his newly appointed government role. The remarks were made during an interview with Sky’s Business Live, where Gerber expressed concerns over Musk’s divided focus and its detrimental impact on Tesla’s performance.
Musk’s Government Role and Public Backlash
Elon Musk’s involvement in the Trump administration as the head of the Department of Government Efficiency (DOGE) has sparked public protests due to planned large-scale government staff cuts. Gerber believes this controversial position has made Musk a divisive figure, leading to negative publicity for Tesla.
Tesla’s Financial Troubles
Since December, Tesla’s market value has plunged by more than $800 billion. On Tuesday, its shares dipped an additional 4% in US trading. Gerber pointed out that Musk’s preoccupation with external ventures, including the acquisition and rebranding of Twitter to X, has further weakened investor confidence.
Challenges in the Electric Vehicle Market
Tesla is facing significant challenges in the electric vehicle (EV) market. Demand for EVs has plateaued across key Western markets despite aggressive price cuts to stimulate sales. Furthermore, Chinese automakers offering cheaper alternatives are chipping away at Tesla’s market share. With potential cost increases from the ongoing trade war under Trump, Tesla’s competitive edge is under serious threat.
Investor Concerns and Calls for Change
Gerber, who has sold a considerable number of Tesla shares in recent months, believes the company is in crisis. He suggested that Musk should either return full-time to Tesla or appoint a dedicated CEO to refocus the company’s efforts. According to him, Tesla’s reputation has suffered considerably due to Musk’s controversial actions and public statements.
The Path Forward for Tesla
While Tesla continues to produce some of the best EVs in the market, Gerber argues that leadership stability is crucial to restore investor confidence and navigate market challenges. A fresh CEO with a singular focus on Tesla’s growth and innovation could potentially reverse the downward trajectory.
In the face of increasing competition and a volatile market environment, the question remains: Can Tesla overcome these obstacles with Musk at the helm, or is it time for a leadership change?
