As billionaire Elon Musk continues to gain political influence in the US, he is also garnering significant backlash, which is not sitting well with some of the investors in his electric vehicle company, Tesla. One of the prominent investors of the American carmaker called on the company’s board to oust Musk as the Tesla CEO.
In a few weeks, Musk took on a visible role in US President Donald Trump’s second administration as he continues to lead the controversial Department of Government Efficiency (DOGE). However, this involvement has raised concerns among Tesla investors, as the company’s stock has continued to struggle throughout 2025.
Not only this, but the various showrooms and facilities of Tesla have also been vandalized by demonstrators who disagreed with Musk’s radical ideas—in a conversation with Newsweek, Tesla investor Ross Gerber, the CEO of Gerber Kawasaki Wealth and Investment Management, stated that it is time for Musk to step down.
Why is Gerber pushing Musk’s exit?
It is pertinent to note that Gerber’s call to oust Musk is coming at a time when Tesla’s shares have dropped 37 percent in 2025. There have also been a growing number of reports in recent weeks about Tesla vehicles, showrooms, and facilities being vandalized. Gerber owns more than 250,000 shares of Tesla stock, which was valued at $248.71 per share at close on Friday.
When asked if Musk should be removed as the CEO of the leading electric car manufacturer, Gerber said, “Absolutely.” He went on to mention that the board should not have let him leave Twitter, now X, without finding his replacement at Tesla.
“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?” the Tesla investor told Newsweek. “It’s been wildly negligent that the board has done nothing to curb Elon’s behaviour, especially around extremist statements,” he furthered.
While emphasising that Musk needs to be “fired,” Gerber still cast doubts that the board would remove the billionaire, as he claimed that it “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.
Not the first time
This is not the first time Gerber has raised his concerns with Musk; he has previously called on the world’s richest man to step away from the company during an interview with Sky News. While Gerber is calling for Musk’s resignation, not everyone thinks the same way.
Another major Tesla investor, Christopher Tsai, told Newsweek that he does not want to see Musk removed as CEO. While Musk does introduce a fair amount of noise, Tsai said he has the highest regard for the company’s CEO. He insisted that Musk’s involvement with DOGE would be “temporary” and believes it will be, based on his past actions.
“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.
He mentioned that his company, Tsai Capital, has returned approximately six times his initial investment in Tesla from 2020. “The returns he has generated for our clients speak for themselves,” he said. The remarks from both investors come at a time when Tesla executives and board members have sold significant portions of their shares in the company. It is worth noting that a share of Tesla stock was worth more than $475 per share just before Christmas.
Can the Tesla board remove Musk?
Tesla shareholders don’t have the power to vote directly or remove the company’s CEO. Ultimately, the power lies with the board. The shareholders can only influence their decisions. “An ouster would likely occur if enough board members, facing pressure from large investors, determined that Musk’s actions or controversies had significantly harmed Tesla’s performance or reputation,” David Park, professor of entrepreneurship at Syracuse University, told Newsweek.
Park maintained that the ousting of a longtime CEO would “alienate loyal retail investors and create substantial market shock.” However, he maintained that it’s “unlikely” they would fire the founder at this point, as he has “consistently delivered on ambitious growth targets” over the years. He’s not facing “large-scale investor concerns” at this time.
“Yet, with Tesla’s valuation now under significant pressure, a prolonged downturn could amplify concerns about Musk’s leadership. If shareholders begin to view his actions as liabilities rather than assets, the board may face increased pressure to reassess his role,” Park explained.
