Elon Musk to be oust as CEO of Tesla? Board demands leadership change
Elon Musk is facing fresh calls to step down as Tesla’s CEO as concerns mount over his divided focus and political ties. Ross Gerber, one of Tesla's earliest investors, has publicly stated that Musk should either fully commit to Tesla or resign in favor of a new leader.
In an interview with Sky News Business Live, Gerber argued that Musk's growing responsibilities—particularly his recent appointment as head of the Trump administration’s Department of Government Efficiency (DOGE)—had made him too "divisive" to effectively lead the electric vehicle (EV) giant.
Gerber, who has sold a substantial number of his Tesla shares in recent months, said that the company is in "absolute crisis" and needs urgent leadership.
"I think Tesla needs a new CEO," he stated. "The business has been neglected for too long. There are too many important things Tesla is doing, so either Elon should come back and focus entirely on Tesla, or he should step down and let someone else lead."
His concerns come amid a series of setbacks for Tesla. The company's market value has plunged by more than $800 billion since December, with shares falling another 4% in U.S. trading on Tuesday. Despite aggressive price cuts, Tesla is struggling to maintain demand in key markets as consumer budgets tighten and Chinese competitors gain market share.
Musk’s close association with President Donald Trump has also fueled controversy, sparking protests over planned mass layoffs of federal employees under DOGE. Meanwhile, Tesla’s reputation has suffered from Musk’s outspoken social media presence and political entanglements.
Gerber believes this negative publicity is directly impacting Tesla’s sales.
"The company’s reputation has been destroyed by Elon Musk," he said. "Sales are plummeting. You literally can’t sell the best product in the market because the CEO is so divisive."
While Musk has not publicly responded to calls for his resignation, pressure from investors could force Tesla’s board to intervene. As the company grapples with falling sales, rising competition, and a declining stock price, its future leadership remains uncertain.
If Musk chooses to remain Tesla's CEO, he may have to step away from his government role and limit his involvement in other ventures, including Twitter (now X), which he acquired in 2022.
For now, Tesla's fate hangs in the balance as investors wait to see whether Musk will reclaim his focus or step aside for new leadership.