A former key investor in Tesla Inc (NASDAQ:TSLA), Ross Gerber, has called for Elon Musk to step down as CEO unless he relinquishes his new government role.
Speaking to Sky News, Gerber argued that Musk’s involvement with the Trump administration, particularly leading the Department of Government Efficiency, has made him too “divisive” and distracted from Tesla’s operations.
Gerber, who has sold off a significant number of Tesla shares, described the company as being in “crisis.” Tesla’s market value has dropped by over $800 billion since December, with falling demand for electric vehicles and increasing competition from cheaper Chinese models adding to its struggles.
He blamed Musk’s split focus, including his 2022 acquisition of Twitter, for damaging Tesla’s reputation. “The company’s reputation has just been destroyed by Elon Musk,” he said, adding that Musk’s political associations and controversial social media presence have alienated potential buyers and investors.