In March 2025, Ross Gerber, a prominent Tesla investor and CEO of Gerber Kawasaki Wealth and Investment Management, publicly called for Elon Musk to step down as Tesla’s CEO, citing an $800 billion plunge in the company’s market value since December 2024. Gerber’s remarks, made during an interview with Sky News, sparked intense debate, as he argued Musk’s divided focus and controversial actions have crippled Tesla’s reputation. Holding over 250,000 shares, valued at roughly $106 million at the end of 2024, Gerber claimed, “The company’s reputation has been destroyed by Elon Musk. Sales are plummeting, so yeah, it’s a crisis.” He pointed to Musk’s role in the Department of Government Efficiency (DOGE), his leadership of X, and polarizing statements as distractions from Tesla’s core business.
Tesla’s stock, which peaked above $475 per share in December, fell to around $225 by mid-March, a 53% drop, according to Business Insider. Gerber, who reduced his firm’s Tesla holdings by 31% in 2024, attributed the slide to Musk’s political ties, particularly his work with President Donald Trump’s administration. “There are too many important things Tesla’s doing,” Gerber said, urging Musk to either recommit to Tesla or appoint a new CEO. He criticized the board’s inaction, calling it “wildly negligent” for failing to curb Musk’s behavior, especially after incidents like vandalism targeting Tesla vehicles, which some linked to Musk’s public image.
Musk’s response has been minimal. In a Fox Business interview, he brushed off Tesla’s $16 billion market hit with a quip: “Always look on the bright side of life!” He denied wrongdoing, calling backlash against him “mental illness.” No direct reply to Gerber’s demand has surfaced on Musk’s X account or in Tesla’s statements. Meanwhile, not all investors agree with Gerber. Christopher Tsai, another shareholder, told Newsweek he opposes removing Musk, citing his “unparalleled ability” to manage multiple ventures. Tesla’s board, including Musk allies, shows no sign of pushing for his exit, with Gerber noting it “solely functions at the benefit of Elon.”
The crisis Gerber describes isn’t universal. Tesla delivered 1.2 million vehicles in 2024, and its Cybercab launch fueled a 22% stock spike in October. Yet, sales weakened in early 2025, with a 1% drop in Europe and rising competition from Chinese EV makers. Public sentiment, reflected on X, splits sharply—some praise Musk’s vision, others echo Gerber’s call for change. One post read, “Musk made Tesla, but now he’s breaking it.” Despite the noise, Tesla’s fundamentals remain strong, though its 65-times forward earnings ratio draws scrutiny.
Gerber’s ultimatum underscores a pivotal moment. Musk’s defenders argue his innovation drives Tesla’s value, while critics see his distractions as a liability. With no clear successor and a loyal board, Musk’s grip on Tesla seems secure—for now. The saga reflects broader tensions between visionary leadership and corporate stability, leaving investors and fans watching whether Tesla can rebound or if Gerber’s warning proves prophetic.
