Elon Musk is practically synonymous with Tesla — and that’s become a problem for at least one major investor.
It’s gotten so bad that one of Tesla’s earliest investors has called for Musk to step down. Ross Gerber said in an interview with Sky News that Musk’s role in the U.S. government — notably the (extremely) divisive Department of Government Efficiency (DOGE) — and close ties to President Donald Trump have damaged Tesla.
“I think Tesla needs a new CEO and I decided today I was going to start saying it and so this is the first show that I’m saying it on,” Gerber said on air with Sky News’ Business Live. “It’s time for somebody to run Tesla. The business has been neglected for too long.”
Gerber said he though Musk needed to step down or fully devote himself to Tesla — but also noted the “company’s reputation has just been destroyed by Elon Musk.”
He added in the Sky News interview: “Sales are plummeting so, yeah, it’s a crisis. You literally can’t sell the best product in the marketplace because the CEO is so divisive”.
Tesla has struggled mightily lately. The company saw a brief bump in share price after Election Day but that has been more than erased by Trump’s actual presidency. Tesla was trading at nearly $480 per share in mid December. It was trading for around $232 per share on Wednesday.
Musk was already controversial, what with his “Roman” salute and nearly $300 million (seemingly successful) effort to sway the 2024 U.S. election. But his actual role in the government — which is vague but apparently wildly powerful — has cratered his reputation for lots of Americans. That has seriously impacted Tesla’s fortunes. Clearly investors are taking notice.
