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Top Tesla investor issues stunning ultimatum to Elon Musk amid major stock plunge and boycott threats

Top Tesla investor issues stunning ultimatum to Elon Musk amid major stock plunge and boycott threats

  • 19.03.2025 03:04
  • dailymail.co.uk
  • Keywords: Destruction of Reputation, Stock Price Decline

A major Tesla investor, Ross Gerber, has demanded Elon Musk step down as CEO amid a 53% stock decline and damaged reputation. Gerber claims Musk's focus on other ventures has hurt Tesla's sales and brand, with insiders like executives and Musk's brother also selling shares.

Tesla ReportsTSLAsentiment_dissatisfied

Estimated market influence

Tesla

Tesla

Negativesentiment_dissatisfied
Analyst rating: Neutral

The company's stock prices have been plunging, and its market value has decreased by over $800 billion. Tesla is facing a crisis due to Elon Musk's involvement in other ventures and the resulting damage to its reputation.

DOGE

Negativesentiment_dissatisfied
Analyst rating: N/A

Musk's focus on DOGE, another venture, has been cited as a reason for Tesla's struggles. The company is facing challenges due to his diversification of efforts.

Context

Analysis of Tesla's Market Crisis and Business Implications

Key Facts and Data Points

  • Stock Performance: Tesla shares have plummeted by 53% since reaching a record high in December 2024.
  • Market Value: The company's market value has dropped by over $800 billion during the same period.
  • Investor Exodus:
    • Ross Gerber, an early investor, is selling his shares due to brand damage.
    • Tesla executives have sold over $100 million worth of shares since February 2025.
    • Gerber's remaining shares are valued at approximately $105 million.
  • Insider Sales:
    • Musk's brother, Kimbal Musk, sold 75,000 shares worth $27 million.
    • Tesla CFO Vaibhav Taneja has also been selling shares, with at least one unscheduled transaction.

Market Trends and Business Impact

  • Brand Reputation Crisis: The company's reputation is under severe strain due to Musk's involvement in unrelated ventures (X and DOGE).
  • Investor Confidence Erosion: Insider sales and the stock decline signal a lack of confidence among key stakeholders.
  • Sales Decline: Tesla's sales are plummeting, attributed to the CEO's divisive public image.

Competitive Dynamics

  • Protests and Boycotts: Nationwide protests and acts of vandalism against Tesla vehicles and dealerships have emerged, particularly targeting Musk's policies on government spending cuts.
    • Over 12 acts of vandalism have been reported since March 2025.
    • A protest in New York City resulted in arrests for disorderly conduct.
  • Public Backlash: The protests are driven by opposition to Musk's and Trump's policies, with some protesters labeling themselves as "resistors."

Regulatory and Legal Implications

  • Government Scrutiny: Musk's agency, DOGE, is facing legal challenges. A Maryland judge ruled that its shutdown likely violated the U.S. Constitution.
  • Potential Long-Term Effects: The ongoing protests and regulatory issues could lead to increased scrutiny and potential changes in corporate governance.

Strategic Considerations

  • Leadership Concerns: Gerber's call for a new CEO highlights concerns about Musk's ability to focus on Tesla amidst multiple high-profile ventures.
  • Brand Revival Needed: Tesla's brand image needs urgent rehabilitation to counteract the negative perception caused by Musk's public persona and business decisions.

Conclusion

The current crisis at Tesla underscores the risks of overextension by its leadership and the potential long-term consequences of a damaged brand reputation. The company faces significant challenges in restoring investor confidence, improving sales, and navigating increasing public backlash and regulatory scrutiny.