Tesla's Leadership Crisis: Why Gerber Says It's Time for a New CEO
36min read The once-unshakable faith in Tesla’s future is fraying at the edges, and Ross Gerber—the firm’s longtime shareholder and CEO of Gerber Kawasaki—is sounding the alarm. In a stark rebuke of Elon Musk’s leadership, Gerber recently declared, “I don’t like Elon. Nobody’s made any money in Tesla for a long time,” adding that his firm faces backlash because “I’m getting attacked because of Elon’s behavior.”
Gerber’s criticisms, laid out in a Bloomberg interview, hinge on Musk’s perceived abandonment of Tesla’s operational needs in favor of distractions like X AI, political advocacy, and high-profile feuds. The result, Gerber argues, is a company adrift: Tesla’s stock has plummeted 33% year-to-date, and its U.S. sales fell 8.6% year-over-year in Q1 2025, even as the broader EV market grew by 11.4%.
The Numbers Tell the Story
Tesla’s struggles are not merely hypothetical. reveal a stock that has lost nearly two-thirds of its value since hitting an all-time high in December 2022. Meanwhile, sales data paints a grim picture: while competitors like Rivian and Lucid posted record growth, Tesla’s U.S. deliveries declined as the brand’s once-sizzling reputation frayed under Musk’s polarizing persona.
Gerber blames Musk’s “divisive” social media posts, his alignment with controversial figures, and his focus on AI and politics. “The business has been neglected for too long,” he insists, pointing to Musk’s feuds with Sam Altman and his role in President Trump’s Department of Government Efficiency (DOGE) as proof of misplaced priorities.
Why Is Gerber Still Holding Shares?
Despite his harsh assessment, Gerber’s firm retains Tesla stock for clients, citing faith in the company’s “best products.” Yet his confidence in Musk’s leadership has evaporated. “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… find a suitable CEO of Tesla,” he demands.
Gerber’s own actions reflect his skepticism: his firm sold 28,481 Tesla shares in Q4 2024, a move he attributes to Musk’s leadership vacuum. The CEO’s absence, Gerber argues, has left Tesla without a clear vision. “Tesla needs to be Tesla,” he concludes, urging investors to prepare for a potential 50% correction from current levels, which would slash the stock to $141—a 67% drop from its peak.
The Broader Implications
Gerber’s stance aligns with growing investor frustration. Analyst Dan Ives of Wedbush notes that “Tesla investors are seeing patience wear thin,” as Musk’s antics overshadow the company’s engineering strengths. Retail investors, however, remain defiant—a testament to Tesla’s loyal fanbase.
Yet the data is undeniable: Tesla’s stock has underperformed the S&P 500 by over 40% since 2021, and its market share in the U.S. EV segment has slipped from 72% in 2020 to 58% in 2025. Even Gerber’s belief in Tesla’s products must contend with the reality that leadership matters.
Conclusion: A Fork in the Road
Ross Gerber’s critique is a wake-up call for Tesla. Musk’s genius as an innovator has not translated into sustained leadership as the company matures. With sales faltering, stock languishing, and internal morale questioned, Tesla faces a critical choice: pivot to a CEO who can refocus the brand, or risk becoming a relic of the EV boom.
The numbers are stark: a 33% YTD stock decline, an 8.6% sales drop in a growing market, and a potential 50% further correction all underscore the risks. Gerber’s firm may still hold shares, but the message is clear: Tesla’s future depends less on its cars and more on who’s driving the company. The clock is ticking—and patience is running out.
