Long-time Tesla investor Ross Gerber is calling for Elon Musk to step down as Tesla's stock has plummeted 40% since January, losing over $800 billion in market value. Gerber, who's sold many of his shares, cites Musk's divided attention across multiple companies and controversial political activities as damaging to Tesla. The leadership crisis comes amid increasing competition from Chinese EV manufacturers and failed promises on autonomous vehicles. Further details reveal how Musk's leadership troubles are affecting investor confidence.
As Tesla's market value continues its dramatic 40% plunge since January, prominent early investor Ross Gerber has publicly called for CEO Elon Musk to step down. Gerber, a long-time Tesla investor and wealth manager, has voiced serious concerns about Musk's divided attention across multiple companies.
Tesla's shares have dropped more than 53% from their record high, with the company losing over $800 billion in market value since December. The electric vehicle manufacturer's European sales have also fallen considerably in recent months.
Tesla's market freefall continues unabated as the EV pioneer hemorrhages value and struggles with declining European demand.
Gerber believes that Musk's controversial political activities and social media presence have damaged Tesla's brand reputation. He's specifically pointed to Musk's involvement with the Trump administration, where he holds a position in the Department of Government Efficiency (DOGE).
"Tesla has the best products in the market, but Musk's actions are hindering sales," Gerber stated. His frustration has led him to sell a considerable portion of his Tesla shares.
The leadership crisis comes at a particularly challenging time for Tesla. The company faces increasing competition, especially from low-cost Chinese electric vehicle manufacturers who are rapidly gaining market share. The Cybertruck's innovation stands out compared to other electric trucks but hasn't been enough to offset overall sales declines.
Tesla has also failed to deliver on its promises of autonomous vehicles, a technology Musk has been touting for years. This delay has further eroded investor confidence in the company's future prospects.
Gerber's ultimatum is clear: Musk must either step down as Tesla CEO or relinquish his other roles at SpaceX, X, and in government. He argues that Tesla is being neglected due to Musk's divided attention across these various enterprises.
Other considerable investors have joined Gerber's calls for leadership change, suggesting that hiring a new CEO could help Tesla recover from its current crisis. Ongoing protests against Tesla have amplified concerns about Musk's leadership abilities and further complicated the company's public relations challenges.
Industry analysts note that Tesla's long-term success remains uncertain as long as these leadership issues persist, despite the company having potentially market-leading products.
Frequently Asked Questions
What Specific Investments Has This Early Investor Made in Tesla?
Ross Gerber has made substantial investments in Tesla, currently owning approximately 260,000 shares valued at $105 million.
This holding is part of his $2.3 billion investment portfolio.
You'll note that while the exact timing and amounts of his initial investments aren't specified, he participated in Tesla's series funding rounds through investment firms.
Recently, Gerber sold a significant portion of his Tesla shares while maintaining a substantial position in the company.
How Much Tesla Stock Does This Investor Currently Own?
Ross Gerber, through his wealth management company, currently owns approximately 260,000 Tesla shares. This substantial holding is valued at around $105 million, comprising a significant portion of his company's overall portfolio.
Your question relates to Gerber's investment in Tesla, which makes up part of his company's estimated $2.3 billion portfolio.
Despite these holdings, Gerber has been selling Tesla shares over the past year due to concerns about the company's direction and leadership.
Who Might Replace Musk if He Were to Step Down?
If Musk were to step down, several potential successors could take his place.
Drew Baglino, a Tesla technical executive, might be considered for his inside knowledge.
Former Volkswagen CEO Herbert Diess brings automotive industry experience.
Tesla's Board Chair Robyn Denholm offers financial leadership expertise.
JB Straubel, a Tesla co-founder, could return despite his current focus on other ventures.
You might also see Tesla recruit an external executive who could bring fresh perspectives to the company's leadership.
What Legal Options Do Shareholders Have to Force Leadership Changes?
As a shareholder, you have several legal options to force leadership changes.
You can file derivative lawsuits against directors for breaching fiduciary duties, submit shareholder proposals at annual meetings, or engage in proxy fights to replace board members.
You can also pursue "entire fairness" reviews in court when conflicts of interest exist.
Delaware's Chancery Court provides a venue for these actions, especially for challenging compensation packages or governance issues.
Large institutional investors often lead these efforts through coordinated voting blocks.
How Has Musk Responded to Previous Investor Criticism?
Musk has typically responded to investor criticism by highlighting Tesla's innovations and delivery numbers.
You'll notice he often deflects concerns through provocative social media statements and emphasizes future technological developments.
When faced with performance questions, he points to Tesla's market leadership position and maintains strong board support.
His approach combines defensive tactics with forward-looking announcements designed to reinforce shareholder confidence, despite the controversies surrounding his leadership style.
