A prominent shareholder of Tesla has called for the board to oust CEO Elon Musk in light of the massive drop in value the car company has suffered the past month due to protests over the tech giant’s outspoken role in the Trump administration.
Shares of Tesla have dropped 35% in the early months of 2025 leading Ross Gerber, the CEO of Gerber Kawasaki Wealth and Investment Management, to publicly call for Musk’s removal. Gerber owns more than 250,000 shares of Tesla stock which was valued at over $428 a share in early January and closed at $240 a share on Friday. Speaking exclusively to Newsweek on Saturday, Gerber responded “absolutely” when asked if the board should seek Musk’s removal.
"Why has the board of directors sat quietly while so much brand value has been eroded to the point that cars are being set on fire?" he said. "It's been wildly negligent that the board has done nothing to curb Elon's behavior, especially around extremist statements."
Musk has gone from a liberal darling to persona non grata over the past year following his embrace of President Donald Trump and his leadership role in the Department of Government Efficiency, which has slashed thousands of federal jobs in the past month. Protests have erupted throughout the U.S with dozens of incidents reported of Teslas being keyed and torched, including whole dealerships. Organizers of a planned “Tesla Takedown” have promised to protest at all 277 Tesla dealerships across the U.S. next week on March 29 in an effort to bankrupt Musk.
Musk owns 12% of Telsa and with his stake in his other business ventures such as the social media platform X and SpaceX, a “Tesla Takedown” is likely to hurt others far more than it will harm Musk. Gerber told the outlet that the board "solely functions at the benefit of Elon" and has been "highly compensated" by Musk." They're not going to do anything he doesn't say," Gerber said.
Yet not all high-level shareholders want to see Musk ousted. Christopher Tsai told Newsweek that he assumes Musk’s role at DOGE will be short-lived and shares of Tesla will recover. "We are unequivocally opposed to any effort to remove Elon as CEO. He has created immense value for shareholders and has consistently demonstrated an unparalleled ability to manage multiple ventures successfully," he said. "Elon is a visionary of this generation, and as fiduciaries, it is our responsibility to align our clients' capital with the highest-quality businesses we can identify and understand."
Tsai added that his firm, Tsai Capital has made six times its initial investment in Tesla since 2020. "The returns he has generated for our clients speak for themselves," he said.
© 2025 Newsmax. All rights reserved.