Tesla's Rocky Road: Why Gerber’s Call for Musk to Step Down Echoes a Growing Investor Revolt

Investors, buckle up! We’re diving into the storm brewing at Tesla. Ross Gerber, a major shareholder, has blown the whistle on Elon Musk’s leadership, claiming the CEO’s divided attention is sinking the company. Let’s dissect this explosive saga and what it means for your portfolio.

The Gerber Gambit: A Shareholder’s Warning

Gerber, who’s held 262,000 Tesla shares worth $106 million, isn’t just another critic—he’s a longtime investor who’s now pulling the plug. In 2024 alone, his firm sold $60 million in Tesla stock, with another 31% reduction by early 2025. His message is clear: Musk’s obsession with DOGE, X, and AI is killing Tesla’s momentum.

Musk’s Multitasking Mayhem

Gerber argues Musk’s “24-hour work ethic” is a myth when it comes to Tesla. While Musk juggle’s SpaceX launches, AI breakthroughs, and his role as head of the Department for Government Efficiency (DOGE), Tesla’s core business is crumbling. Key issues:

1. Sales in Free Fall: Tesla’s 2024 deliveries dropped to 1.79 million from 1.81 million—a first-ever decline. The Cybertruck, once hyped as bulletproof, now sells 25% fewer units than a year ago.
2. Tech Lag: Competitors like Waymo (using LIDAR) have leapfrogged Tesla’s camera-based FSD. Musk’s June 2025 deadline for a driverless taxi fleet in Austin? Gerber calls it a “fantasy.”
3. Brand Black Eye: Protests, vandalism, and boycotts have followed Musk’s divisive rhetoric. A Tesla dealership in Las Vegas was firebombed, and 16% of U.S. consumers now avoid the brand due to Musk’s politics.

The Numbers Don’t Lie

Let’s get granular:
- Market Cap Madness: Tesla’s $1.1 trillion valuation in 2025 is 5x Toyota’s, despite delivering fewer cars and posting lower profits. Analysts like JPMorgan see a $135 price target (a 60% drop from 2024 highs).
- Used Car Catastrophe: The Cybertruck loses 58% of its value within a year. Compare that to BYD’s new EVs, which hold value better and dominate emerging markets.
- Political Poison: Tesla’s sales in Democratic-leaning states dropped 7% in 2024 as buyers flee Musk’s pro-Trump alignment.

Musk’s Defense: “We’re Still the Future”

Musk isn’t backing down. He insists Tesla remains a “peaceful company” and blames critics for “insane” attacks on its vehicles. But the data tells a different story:
- European sales plunged 45% in early 2025.
- Tesla’s aging models (Model S/X from 2012/2015) can’t compete with BYD’s sleek, affordable designs.
- Even loyal customers are bailing: 65% of owners now say they’d switch brands next time—a 7% drop from 2023.

Why This Matters to You

Gerber’s call for Musk to step down isn’t just a shareholder gripe—it’s a red flag for investors. Tesla’s overvaluation, brand erosion, and leadership crisis are a toxic brew. Here’s what to watch:
- Leadership Shakeup: Will Musk finally appoint a COO to focus on operations? His brother Kimbal and CFO Vaibhav Taneja have sold millions in shares—bad omens.
- Market Reality Check: Tesla’s P/E ratio of 118x is ridiculous for a company with slowing growth. BYD’s stock surged 70% in 2024 while TSLA fell 35%.
- Political Fallout: As Musk’s DOGE role deepens, so does the risk of regulatory scrutiny and consumer backlash.

Conclusion: Tesla’s Crossroads

Gerber isn’t the only one sounding alarms. Investors like Christopher Tsai and analysts at UBS have downgraded Tesla, citing Musk’s “toxic contagion.” The math is damning: a $141 stock price (Gerber’s prediction) would wipe out $1.3 trillion in market value.

Bottom Line: Tesla’s future hinges on Musk choosing between his many empires or Tesla’s survival. Until then, this stock is a high-risk gamble. If you’re in, brace for volatility. If you’re out, wait for clarity—or jump into BYD’s rising star.

The road ahead is bumpy. Stay vigilant!