The leadership of Tesla faces critical evaluation after Ross Gerber, who invested in the company early on, asked Elon Musk to step down as CEO. During his Sky News interview, Gerber argued that Musk’s increasing political obligations, including his role as Trump advisor, have pulled him away from managing Tesla properly.
Gerber believes that Musk’s participation in the Trump administration’s Department of Government Efficiency (DOGE) has created too much polarization which has resulted in widespread public demonstrations. According to Gerber, Tesla has experienced decline because Musk has had to divide his attention between different priorities. Elon Musk needs to choose between resuming his full-time CEO role or allowing another person to take over as leader of Tesla, he says.
The current difficulties Tesla faces support these previous concerns. The company’s market capitalization has lost more than $800 billion since December while facing declining electric vehicle (EV) sales in Western markets. Reduced prices have not been able to stop rivals such as Chinese EV manufacturers from taking away market share from Tesla. Trump’s trade policies have created additional concerns for investors because they are expected to raise operational costs.
The company faced a crisis, which prompted Gerber to dispose of substantial Tesla stock holdings. Tesla’s reputation took a hit, according to Gerber, because of Musk’s controversial Twitter (now X) acquisition and his political stance following the purchase. Gerber stated that Elon Musk has completely ruined Tesla’s public image.
The rising pressure from investors might force Musk to dedicate more attention to Tesla or leave his position. The next several months will decide if Elon Musk can win back investor trust to lead Tesla toward financial stability.
