Tesla, which sells nearly half of its electric vehicles in the United States, has long been synonymous with its founder and CEO Elon Musk. But this bond is increasingly becoming the responsibility of some of Tesla’s major investors. “The company’s reputation has just been destroyed by Elon Musk,” said wealth manager Ross Gerber, an early Tesla investor, to Sky News in a interview today (March 19).
Gerber currently owns 262,000 shares of Tesla shares through its company Gerber Kawasaki Wealth & Investment Management, adding that Musk needs to find a new CEO for Tesla or leave his political effort to serve as the Department of Efficiency (DOGE) of the Trump administration.
Musk owns or operates at least five companies other than Tesla. In last year’s annual report, Tesla listed Musk’s participation in companies such as SpaceX, X and XAI because the CEO “is not professional and focused on Tesla.”
But Musk’s external activities have not aroused public opposition as much as he has recently entered right-wing politics. Musk’s backup goalkeeper has cuts in federal budget and workforce in recent months, making Tesla a target for people with growing political influence from billionaires.
In addition to the implementation of protests at Tesla dealerships and vehicles, this negative sentiment has also weakened Tesla’s electric car sales and stock prices. Tesla’s shares have fallen by about 50% since its December highs after Trump’s election victory. Sales declined in all of its major markets.
Investors want new Tesla CEO
Gerber said on the impact of Musk on automakers: “You can’t actually sell the best products on the market.” Investors added: “It’s time someone runs Tesla. The business has been overlooked for too long.
Other notable Tesla supporters seem to share Gerber’s views. Christopher Tsai, an investment manager with 75,000 shares in the electric vehicle company, urged Musk to return his attention to Tesla in a recent interview with The Guardian. “I hope he is involved [DOGE] Short life span. ” Tsai said.
Not just investors who are upset with Musk. For some Tesla owners, electric cars have become unnecessary political statements. “I bought Tesla because it’s as fast as a rocket ship,” Senator Mark Kelly, Democrat of Arizona, said in an X post earlier this week. He revealed that he was selling Tesla. “Every time I drive, I feel like a rolling billboard for a man who teases down our government and hurts people,” he added. According to S&P Global Mobility, U.S. Tesla cars registrations fell 11% in January compared to the previous year.
Even the long-time Tesla Bulls are changing their tunes. “There has been no sign of musk in any Tesla factory or manufacturing plant in the past two months, and that has become a reality for Tesla stock,” Dan Ives, an analyst at Wedbush Securities, said in a client note earlier this month. He added that if Musk’s focus remains on the Governor, brand damage will become more common. ”
This is not the first time Musk’s external activities have caused a crisis for investors. After the entrepreneur won Twitter for $44 billion in 2022 (now known as X), Tesla shareholders urged Musk to redirect his attention to the automaker, and Musk eventually resigned as the platform’s CEO and became the platform’s CEO in 2023. Tesla’s turmoil over the next few months was “critical”.
