Tesla is facing an unprecedented crisis as its market value has plummeted by over $800 billion since December 2024, triggering a firestorm of criticism aimed at CEO Elon Musk. On March 19, 2025, Ross Gerber, a prominent early investor in the electric vehicle giant, publicly demanded Muskâs immediate resignation, accusing him of destroying Teslaâs reputation and neglecting the company amid his political endeavors. The shocking collapse has sent tremors through global markets, with Teslaâs stock plunging 53% from its peak, leaving investors reeling and intensifying pressure on Musk as the embattled CEO at the heart of the chaos.
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Gerber, whose firm Gerber Kawasaki Wealth & Investment Management holds over 250,000 Tesla shares, lambasted Musk for his divisive behavior and distractions, particularly his role in the Trump administrationâs Department of Government Efficiency (DOGE). Since January 2025, Musk has been deeply involved in government cost-cutting efforts, a move that Gerber claims has left Tesla leaderless. âThe business has been neglected for too long,â Gerber told Sky News, pointing to Muskâs split focus since acquiring Twitter (now X) in 2022 and his alignment with far-right politics, which has alienated Teslaâs core customer baseâeco-conscious liberals. Protests at Tesla showrooms and vandalism of vehicles have surged, with some owners expressing âTesla shameâ over Muskâs actions.
The financial toll has been staggering. Tesla reported its first-ever annual sales drop in 2024, a trend that worsened in 2025 with a 13% decline in first-quarter deliveriesâthe weakest since 2022. Analysts cite multiple factors: slowing global demand for electric vehicles, fierce competition from cheaper Chinese rivals, and Muskâs polarizing political stance, which has sparked boycotts across the U.S. and Europe. In January 2025, Tesla sales in Europe cratered by 45%, even as overall EV sales rose. Meanwhile, Trumpâs tariffs have disrupted Teslaâs supply chain, further eroding investor confidence and wiping out a post-election stock rally that once saw gains of over 90%.
Muskâs personal wealth has also taken a massive hit, dropping by $121 billion since January, though he remains the worldâs richest person at $323 billion. However, Tesla is no longer his most valuable asset, with his 42% stake in SpaceXânow worth $147 billionâsurpassing his Tesla holdings. Critics argue that Muskâs focus on SpaceX, X, and DOGE has left Tesla vulnerable, with some investors, like Gerber, selling shares to mitigate losses. âYou canât sell the best product when the CEO is so divisive,â Gerber stated, highlighting the brandâs tarnished image.
As markets tremble, the calls for Muskâs resignation grow louder. Some speculate that Tom Zhu, President of Tesla China, could step in, given his success in expanding Teslaâs operations in the worldâs largest EV market. However, Musk has shown no intention of stepping down, insisting on X that Tesla will be âfine long-term.â Yet, with sales plummeting, protests escalating, and investors like Gerber leading the charge for change, the pressure on Musk is mounting. The Tesla meltdown has become a defining moment, raising questions about whether Musk can weather the storm or if his reign at Tesla is nearing a dramatic end.
