Tesla, the electric vehicle (EV) giant, is facing mounting pressure from investors as its market value has plummeted by over $800 billion since December 2024.
Ross Gerber, a prominent Tesla investor and CEO of Gerber Kawasaki Wealth and Investment Management, has publicly called for Elon Musk to step down as CEO.
Ross attributes Tesla’s current crisis to Musk’s divided focus and controversial actions, which have significantly impacted the company’s reputation, sales, and market performance.
Tesla Investor Concerns Over Leadership
Ross Gerber has been vocal about his concerns regarding Musk’s leadership, citing his involvement in multiple ventures, including his role in the U.S. Department of Government Efficiency (DOGE) under Donald Trump’s administration.
Ross argues that Musk’s political entanglements and focus on external projects, such as Twitter (now rebranded as X), have distracted him from Tesla’s core operations.
This divided attention, according to Ross, has created a leadership vacuum at Tesla, leading to declining sales and a tarnished brand image.
In a recent interview, Ross stated, “Tesla is in a crisis. Sales are plummeting, and the company’s reputation has been destroyed by Elon Musk. You can’t sell the best product in the market because the CEO is so divisive.”
He further emphasized the need for Musk to either recommit to Tesla or step aside to allow a dedicated CEO to steer the company back on track.
Market Challenges and Declining Sales
Tesla’s market value has seen a staggering decline, dropping by over $800 billion in just a few months.
The company is grappling with several challenges, including increased competition from Chinese EV manufacturers offering more affordable alternatives and a plateau in EV demand across key Western markets.
Despite aggressive price cuts to stimulate sales, Tesla has struggled to maintain its market share.
Adding to the company’s woes are global protests and boycotts, with Tesla stores and vehicles being targeted by demonstrators.
Critics argue that Musk’s controversial statements and actions have alienated a significant portion of Tesla’s customer base, further exacerbating the company’s struggles.
Calls for Leadership Change at Tesla and Elon Musk’s Response
Ross’ call for Musk’s resignation has sparked a broader debate among investors and industry experts about the future of Tesla’s leadership.
While some investors believe that Musk’s visionary approach is irreplaceable, others argue that a fresh perspective is needed to address the company’s current challenges.
Ross has suggested that Tesla appoint a new CEO who can focus solely on the company’s growth and innovation.
He believes that leadership stability is crucial to restoring investor confidence and navigating the increasingly competitive EV market.
Elon Musk, known for his outspoken nature, has yet to publicly address Ross’ remarks.
However, the growing frustration among investors indicates that pressure is mounting for Musk to make a decision.
Whether he chooses to recommit to Tesla or step aside, the outcome will have significant implications for the company’s future.
As Tesla continues to face declining sales, increasing competition, and a volatile market environment, the question remains: Can the company overcome these obstacles with Musk at the helm, or is it time for a leadership change?
Note: We are also on WhatsApp, LinkedIn, Google News, and YouTube, to get the latest news updates, Subscribe to our Channels. WhatsApp– Click Here, Google News– Click Here, YouTube – Click Here, and LinkedIn– Click Here.
