First Tesla Investor Calls for Elon Musk to Step Down as CEO Amidst Business Crisis
Investor Ross Gerber criticizes Elon Musk's focus and suggests Tesla needs new leadership as the company's market value plummets.
Ross Gerber, one of Tesla’s early investors, has publicly called for Elon Musk to resign from his position as CEO of the electric vehicle manufacturer unless he withdraws from his new role in the U.S. government.
Gerber expressed concerns over Musk's shift in focus due to his increasing involvement in government, particularly his leadership of the new Office of Government Efficiency (DOGE).
He stated, "I think Tesla needs a new CEO, and today I am starting to say that.
It’s time for someone to lead Tesla.
The business has been neglected for too long."
Gerber highlighted that the company is currently facing a crisis and disclosed that he has sold a significant number of shares in recent months due to the downturn.
Tesla's market value has dropped more than $800 billion since December 2022, a decline that began prior to Donald Trump’s return to office.
According to Gerber, Tesla's sales have reportedly plateaued in key Western markets, even amidst aggressive price cuts aimed at enhancing demand in the face of ongoing pressure on consumer budgets.
There is growing concern regarding Tesla's market share, with increasing pressure from affordable Chinese competitors contributing to the decline.
Additionally, the potential rise in costs attributed to Trump’s trade policies has led to heightened investor anxiety.
Musk has faced criticism for being unable to dedicate sufficient time to Tesla operations, especially since acquiring Twitter in 2022. "Musk has only 24 hours in a day," Gerber noted, emphasizing the impact of Musk's various commitments on Tesla’s performance.
Furthermore, he commented on the adverse publicity generated by Musk's social media presence and his collaboration with the President, stating, "The company’s reputation has been damaged by Elon Musk.
Sales are declining; it is a crisis.
You literally cannot sell the best product on the market because the CEO is creating divisions."
Tesla continues to be recognized for its products, which are often viewed as the best in the world, yet challenges persist in maintaining market leadership amidst growing competition and internal pressures.
Gerber expressed concerns over Musk's shift in focus due to his increasing involvement in government, particularly his leadership of the new Office of Government Efficiency (DOGE).
He stated, "I think Tesla needs a new CEO, and today I am starting to say that.
It’s time for someone to lead Tesla.
The business has been neglected for too long."
Gerber highlighted that the company is currently facing a crisis and disclosed that he has sold a significant number of shares in recent months due to the downturn.
Tesla's market value has dropped more than $800 billion since December 2022, a decline that began prior to Donald Trump’s return to office.
According to Gerber, Tesla's sales have reportedly plateaued in key Western markets, even amidst aggressive price cuts aimed at enhancing demand in the face of ongoing pressure on consumer budgets.
There is growing concern regarding Tesla's market share, with increasing pressure from affordable Chinese competitors contributing to the decline.
Additionally, the potential rise in costs attributed to Trump’s trade policies has led to heightened investor anxiety.
Musk has faced criticism for being unable to dedicate sufficient time to Tesla operations, especially since acquiring Twitter in 2022. "Musk has only 24 hours in a day," Gerber noted, emphasizing the impact of Musk's various commitments on Tesla’s performance.
Furthermore, he commented on the adverse publicity generated by Musk's social media presence and his collaboration with the President, stating, "The company’s reputation has been damaged by Elon Musk.
Sales are declining; it is a crisis.
You literally cannot sell the best product on the market because the CEO is creating divisions."
Tesla continues to be recognized for its products, which are often viewed as the best in the world, yet challenges persist in maintaining market leadership amidst growing competition and internal pressures.
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