Elon Musk is facing an unprecedented storm at Tesla, as the company’s stock experiences a steep decline, coupled with calls for his resignation as CEO. According to reports, the electric vehicle manufacturer has seen its shares plummet over 50% since December 2024, prompting major concerns among investors about the future of the brand and its leadership.
As of March 20, 2025, Tesla’s stock has been in freefall, compelling Musk to consider drastic actions such as borrowing against his properties to stabilize his financial footing. Reports indicate that Elon Musk might soon need to take out loans from banks. This financial strain comes at a time when Tesla also faces vandalism incidents worldwide, impacting its public image further.
Among the most vocal critics of Musk is Ross Gerber, a longstanding Tesla investor, who has publicly called for Musk to step down as CEO. He expressed his concerns during a candid interview on Sky News, asserting that Elon Musk spends a significant amount of his time involved in government affairs at the expense of effectively leading Tesla. Gerber stated, "Elon is engaged in his work with the government; that's where he spends his time. But he does not lead Tesla"—a clear signal that the investor feels the CEO’s dual commitments are incompatible.
Gerber's criticisms arise amid troubling news for Tesla, with the company's stock having surged to $479 following the U.S. election in late 2024. However, as Musk became the head of the Commission américaine pour l’efficacité gouvernementale (DOGE) and a senior advisor to President Trump, many investors began to worry that Tesla’s gravitas was suffering due to the political climate and Musk’s polarizing public persona.
Furthermore, vandalism and social protests against Tesla have been rising, including incidents at their headquarters in Saint-Ouen, France, where the brand was targeted by graffiti and public dissent. Gerber's perspective on Musk’s leadership has taken a more urgent tone, insisting that the company cannot continue functioning under the current leadership arrangements: "Tesla has been neglected too long and requires a new CEO quickly." Gerber's sentiments encapsulate a broader discourse among investors, who fear that Musk's behavior and political antics are dragging the company down.
Additionally, concerns have been raised about slowing demand for electric vehicles in Tesla's primary markets due to fierce competition, particularly from Chinese manufacturers, which is exacerbating the company's current challenges. Gerber pointed out that, despite Tesla's vehicles being some of the best in the market, "the reputation of the company is being destroyed by Elon Musk. You can’t literally sell the best product on the market because your CEO has become too polarizing." This statement reflects the depth of frustration that seems to be spreading among shareholders and stakeholders alike.
In a reflection of his declining confidence, Gerber mentioned that he sold $60 million worth of Tesla shares last year, citing a "loss of confidence" in the company's leadership. His remarks have brought to light the serious concerns about Musk’s ability to simultaneously steer the company while engaging in politically charged activities that many see as conflicting with Tesla’s mission.
Meanwhile, the pressure is mounting: on March 18, 2025, Tesla shares dropped another 5%, accelerating the calls for a shake-up at the top of the organization. With Tesla’s market capitalization having plunged more than $800 billion since late last year, the urgency of the situation cannot be underestimated.
In this high-stakes environment, the future of Tesla seems uncertain. With Musk balancing multiple roles—CEO of Tesla, head of the social platform X (formerly Twitter), and leadership of SpaceX—investors like Gerber argue that he must make a choice about where to focus his energies. He ultimately contemplates whether Musk will prioritize Tesla or continue to influence the political stage, a question that may decide the fate of the automotive pioneer.
A potential leadership change or shift in priorities could define the next chapter for Tesla, an organization that continues to revolutionize the automotive industry but grapples with intense scrutiny and challenges. The coming weeks could prove critical in determining whether the company can regain its footing or if it will further descend into chaos.
