March 19, 2025 – In a stunning development that has rocked the tech and automotive worlds, a prominent Tesla investor has publicly called for Elon Musk to resign as CEO, citing irreparable damage to the electric vehicle giant’s reputation.

Ross Gerber, a longtime shareholder and one of Tesla’s earliest backers, issued the demand during an interview on Sky News’ Business Live on Tuesday, March 18, accusing Musk of neglecting the company and tarnishing its brand through his divisive political involvement and erratic leadership.

Gerber, whose wealth management firm Gerber Kawasaki holds an estimated $105 million in Tesla stock, didn’t mince words. “I think Tesla needs a new CEO, and I decided today I was going to start saying it,” he told host Darren McCaffrey.

“The company’s reputation has just been destroyed by Elon Musk. 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.”

A Crisis Unfolds

The call for Musk’s resignation comes as Tesla grapples with mounting challenges. The company’s stock has plunged 53% since hitting a record high of $480 per share in December 2024, erasing over $800 billion in market value. Shares closed at $225.31 on March 18, down 5.3% for the day, amid a broader tech selloff. Analysts attribute the decline to sluggish electric vehicle demand, fierce competition from Chinese manufacturers like BYD, and a growing consumer backlash tied to Musk’s polarizing persona.

Gerber pointed to Musk’s role as head of the Trump administration’s Department of Government Efficiency (DOGE) as a tipping point. Since joining President Donald Trump’s inner circle in January 2025, Musk has spearheaded controversial cuts to federal spending, slashing over 100,000 government jobs and drawing widespread protests. His actions—including a gesture critics likened to a Nazi salute and vocal support for far-right causes—have fueled boycotts of Tesla products across North America and Europe. Demonstrators have picketed Tesla showrooms, and reports of vandalism against Tesla vehicles have surged.

“The way people view your brand is really crucial to the purchasing process,” Gerber said. “When your brand gets tarnished like this, it’s real bad.” The investor revealed he has already begun selling off portions of his Tesla holdings, a move mirrored by other insiders, including Musk’s brother Kimbal Musk, who unloaded $27 million in shares last month, and Chief Financial Officer Vaibhav Taneja, who sold over $5 million worth.

Musk’s Divided Attention

Gerber argued that Musk’s sprawling commitments—running Tesla, SpaceX, X, and now DOGE—have left the carmaker adrift. “It’s time for somebody to run Tesla. The business has been neglected for too long,” he said, suggesting Musk either refocus on Tesla or step aside for a new leader. “There are too many important things Tesla’s doing, so either Elon should come back and be the CEO and give up his other jobs, or he should focus on the government and find a suitable CEO for Tesla.”

Musk’s political turn has coincided with a shift in Tesla’s trajectory. Once hailed as an innovator poised to dominate the EV market with affordable models like the scrapped $25,000 “Model 2,” the company has pivoted to ambitious but unproven ventures like robotaxis. Sales dropped 45% in Europe in January, per Jato Dynamics, and California—Tesla’s biggest U.S. market—reported its first annual decline in 2024. Meanwhile, competitors are closing the gap with cheaper, reliable alternatives.

A Defiant Musk

Musk has shown little concern over the mounting criticism. In a March 12 post on X, he brushed off the stock slide, writing, “Tesla will be fine in the long term,” alongside a photo of Trump showcasing a Tesla vehicle at the White House. Last week, during a Fox Business interview, he acknowledged juggling his roles “with great difficulty” but expressed intent to continue with DOGE for at least another year. Tesla did not respond to requests for comment on Gerber’s statements.

The billionaire’s supporters argue his vision remains Tesla’s greatest asset. “Elon’s the reason Tesla is what it is,” one X user posted. “Gerber’s just panicking over a dip.” Yet even loyalists can’t ignore the numbers—or the optics. Posts on X from Tesla owners vowing to sell their cars, coupled with bumper stickers reading “I bought it before Elon went nuts,” reflect a growing rift.

What’s Next for Tesla?

Gerber’s demand places Tesla’s board in a precarious spot. With Musk’s brother Kimbal and Chairwoman Robyn Denholm among its ranks, the board has historically backed the CEO through controversies, including his 2018 SEC settlement that forced him to step down as chairman. Whether this crisis prompts a shift remains unclear, but pressure is mounting as investors like Gerber signal a breaking point.

For now, Tesla’s fate hangs in the balance. If Musk steps down, it could mark the end of an era for the company he transformed into a $1.5 trillion titan at its peak. If he stays, he’ll need to navigate a storm of his own making—one that threatens to sink the brand he built. As Gerber put it, “You can have the best product in the world, but if people won’t buy it because of you, what’s the point?”