Tesla investor Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, has publicly called for Elon Musk‘s removal as Tesla CEO. This demand, expressed in a recent phone interview to NewsWeek, echoes his previous criticisms following Musk’s acquisition of Twitter (now X) in June 2022. Angry at Elon Musk’s Twitter buy and the consequent fall in Tesla stock, Ross Gerber had said that Musk is “not suited” to run Twitter Inc and should instead focus on repairing the damage his acquisition has done to Tesla Inc’s brand.
Gerber had made these comments when Tesla’s value had tumbled more than 60% in December 2022 since the start of that year, and Musk has sold a substantial portion of his own shares to fund Twitter’s $44 billion acquisition in June 2022.
In an interview to Bloomberg TV during that time, Gerber said, “Let somebody who’s a media-savvy person deal with advertisers and the media and the front face of the company,” He added, “I think he just got himself maybe over his skis in an area that he’s just not suited to deal with the subtleties of.”
Ross Gerber to Tesla Board: Tesla needs a new CEO
As a long-time Tesla investor holding over 250,000 shares, Gerber asserts that the Tesla board has been “wildly negligent” in failing to curb Musk’s “extremist statements” and the resulting brand erosion. He believes the board “solely functions at the benefit of Elon” and is unlikely to act against him. “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.” Still, he cast doubt that Musk would be removed by the board, which he says “solely functions at the benefit of Elon” and has been “highly compensated” by Musk.
Gerber explicitly stated, “I think Tesla needs a new CEO,” emphasizing that Tesla’s core business has been “neglected for too long.”
Elon Musk only has 24 hours in a day
Gerber suggested Musk either return his full attention to Tesla or step aside, allowing a dedicated CEO to manage the company. Gerber attributes Tesla’s stock decline to Musk’s divided attention and the negative publicity generated by his social media activity and political involvement. He said that Musk only has 24 hours in the day and he has split his time too thinly since his purchase of Twitter – now called X – in 2022. He believes that while Tesla’s products are exceptional, Musk’s limited time and distractions have become detrimental to the company.