Tesla Inc. (NASDAQ: TSLA) shareholder and prominent investor Ross Gerber is ramping up his calls for new leadership at the electric vehicle giant, expressing frustration over Elon Musk’s divided attention and the company’s recent struggles.
In a recent interview with Sky News, Gerber accused Musk of neglecting Tesla, claiming the CEO is too focused on his government-related ventures and other businesses, such as SpaceX and X (formerly Twitter).
“He is not running Tesla… it’s time for somebody to run Tesla,” Gerber said.
“The business has been neglected for too long.”
Gerber’s Six-Month Ultimatum
Back in September 2024, Gerber gave Musk a six-month deadline to refocus on Tesla or step aside. While he hasn’t exited his Tesla position, Gerber’s recent comments indicate growing dissatisfaction with the company’s direction.
He argued that Musk’s divided attention has led to:
- Weaker operational execution, impacting vehicle deliveries and customer satisfaction.
- A lack of clear strategic direction as Tesla faces mounting competition from rival EV makers.
- Cybertruck’s underwhelming rollout, which failed to meet investor expectations.
Tesla’s Struggles: Falling Stock Price and Insider Selling
Gerber’s criticism comes at a time when Tesla’s stock price has been under pressure. With weaker-than-expected deliveries, supply chain challenges, and growing concerns over Musk’s focus, Tesla shares have experienced significant volatility.
Additionally, Tesla insiders have been selling shares, raising further concerns:
- Kimbal Musk, Elon’s brother, recently sold a large chunk of Tesla stock, fueling speculation about insider confidence in the company’s future.
- Other key executives have also reduced their holdings, adding to investor unease.
A Leadership Change on the Horizon?
Gerber believes that Tesla needs a dedicated CEO who can prioritize the company’s core business. He argued that Musk should either:
- Return as Tesla’s full-time CEO and step back from his other ventures.
- Or appoint a new CEO to lead Tesla, allowing Musk to focus on his government contracts and other projects.
“Either Elon should come back to Tesla and be the CEO of Tesla and give up his other jobs or he should focus on the government and keep doing what he’s doing but find a suitable CEO of Tesla,” Gerber stated.
