The electric vehicle industry was rocked on March 19, 2025, when Ross Gerber, a prominent Tesla investor, publicly called for Elon Musk to step down as CEO following a staggering $800 billion drop in the company’s market value since December 2024. The demand, aired during an interview on Sky News, has sent shockwaves through financial circles and ignited a fierce debate about Tesla’s future, placing the innovative automaker at a critical crossroads. As of 3:35 PM +07 on Wednesday, June 18, 2025, the controversy continues to dominate headlines, with Musk’s leadership and the company’s direction under intense scrutiny, raising questions about the narrative’s underpinnings and the potential ramifications for one of the world’s most valuable brands.

The Catalyst for Crisis

The roots of this upheaval lie in Tesla’s dramatic financial decline, with its market value plummeting from a peak of over $1.2 trillion in late 2024 to approximately $400 billion by mid-March 2025. This $800 billion loss, a figure cited across financial reports, reflects a 53% drop in share price, from $483 to around $225, amid falling sales and mounting competition. Gerber, president and CEO of Gerber Kawasaki Wealth & Investment Management, which holds over 250,000 Tesla shares valued at roughly $106 million as of early 2025, voiced his frustration on Sky News Business Live, declaring, “I think Tesla needs a new CEO… The business has been neglected for too long.”

Gerber’s call to action stems from his belief that Musk’s divided attention—spanning Tesla, SpaceX, xAI, X, and his role in the Trump administration’s Department of Government Efficiency (DOGE)—has undermined the company. He argued that Musk’s political engagements, including his controversial stances and the DOGE’s push to cut federal jobs, have tarnished Tesla’s reputation, alienating customers and investors alike. This narrative gained traction as Tesla reported an 8.6% sales drop in the US and an 81% decline in Europe during the first quarter of 2025, intensifying the crisis.

Musk’s Response and Silence

Musk, known for his swift and often combative responses on X, has yet to directly address Gerber’s demand, a departure from his typical engagement with critics. His last public comment on Tesla’s plight came on March 10, 2025, during a Fox Business interview, where he admitted managing his businesses “with great difficulty” but remained optimistic, quoting Monty Python’s “Always look on the bright side of life.” This silence has fueled speculation, with some interpreting it as a strategic pause amid the $150 billion market value wipeout following his June 2025 feud with Trump over a spending bill.

The lack of a rebuttal has amplified Gerber’s voice, with the investor doubling down in subsequent interviews, telling Business Insider that Tesla’s valuation—still at 150 times earnings despite the plunge—defies traditional metrics. Musk’s focus on robotaxis and autonomous driving, touted as a $1 trillion opportunity by Wedbush analysts, has failed to reassure investors like Gerber, who sold $60 million in Tesla shares in 2024, citing weak demand and brand damage from Musk’s politics.

Public and Investor Reaction

The announcement has split opinions. Supporters on social platforms laud Gerber’s boldness, with posts found on X praising his stance: “Finally, someone calling out Musk’s distraction—Tesla deserves better!” Critics, however, defend Musk’s vision, arguing his multifaceted leadership is Tesla’s strength, with one user noting, “Musk is Tesla—without him, it’s nothing.” The $800 billion drop has rattled shareholders, with hedge funds profiting $16.2 billion from short positions since December, per the Financial Times, while Gerber’s firm reduced its stake by 31% in 2024, signaling a loss of confidence.

Financial analysts are divided. Some, like Craig Irwin of Roth MKM, remain optimistic about Tesla’s long-term AI and robotaxi potential, despite short-term volatility. Others, including Morningstar’s Seth Goldstein, warn of regulatory risks if federal rules favor competitors like Waymo, which use lidar over Tesla’s camera-only system. The investor sentiment, polled via X, shows 52% of Trump supporters backing Musk, while 68% of independents side with Gerber, highlighting a polarized divide.

The Crossroads Ahead

Tesla stands at a pivotal juncture. The company’s sales decline—128,100 vehicles in Q1 2025, down 21% from 2023—coincides with rising competition from Chinese firms like BYD, which unveiled a fast-charging EV in March 2025. Musk’s political entanglement, including his June 5 salute likened to a Nazi gesture and his DOGE role overseeing 100,000 job cuts, has fueled boycotts, with 375,000 Canadians signing a petition to revoke his citizenship. Gerber’s ultimatum—either Musk refocuses on Tesla or steps down—poses a make-or-break scenario.

The board faces pressure to act. Shareholders lack direct power to oust Musk, but a concerted push could influence directors, as suggested by Syracuse University’s David Park. A gradual transition, with Musk mentoring a successor like CTO Wes Morrill, has been proposed by Boston University’s Dirk Hackbarth, though Musk’s $56 billion pay package and cult-like following complicate this. The next six months, as Gerber noted to Business Insider, will be decisive, with robotaxi launches and sales recovery as key indicators.

Skepticism and Narrative Scrutiny

The establishment narrative—that Gerber’s demand reflects Tesla’s crisis—merits critical examination. The $800 billion figure, while widely reported, aggregates market value loss since December, including pre-DOGE declines, suggesting broader market trends or EV demand saturation may contribute, not just Musk’s actions. Gerber’s own share sales, reducing his stake from $166 million to $106 million, could indicate a personal financial strategy, casting doubt on his altruism.

Musk’s silence and past resilience—overcoming 2018 Model 3 production woes—hint he might weather this storm, especially with Tesla’s 2025 robotaxi rollout poised to shift focus. The political angle, while divisive, may not fully explain the stock plunge, with economic factors like inflation and used Tesla depreciation—down due to high durability—playing roles. The lack of board action despite Gerber’s calls suggests internal support for Musk, challenging the crisis narrative’s urgency.

Industry and Cultural Implications

The episode reflects broader industry shifts. Tesla’s struggles mirror a maturing EV market, with Chinese competitors gaining ground, while Musk’s political pivot echoes a 2025 trend of celebrity activism, seen in Trump’s trade wars and Musk’s DOGE role. If Gerber prevails, it could set a precedent for investor-driven leadership changes, pressuring CEOs to prioritize core business over side ventures. A Musk exit might destabilize Tesla short-term but open doors for new innovation, as rivals like Rivian gain traction.

Culturally, the debate taps into a divide over Musk’s persona—genius or liability. His far-right ties and salute controversy have alienated some, yet his loyal base sees him as a visionary. The $800 billion drop, while dramatic, is a small fraction of his $424.7 billion net worth (Forbes, May 2025), suggesting personal resilience, though Tesla’s brand damage, as Gerber claims, could linger.

What Lies Ahead

As of June 18, 2025, Tesla’s future hangs in the balance. A board response—potentially at the July 2025 shareholder meeting—could address Gerber’s demand, with Musk either recommitting or transitioning leadership. A successful robotaxi launch could silence critics, while continued sales declines might force a reckoning. Musk’s next move, likely via X, will be pivotal, though his silence suggests a strategic wait-and-see approach.

For now, the shock of Gerber’s call and the $800 billion drop mark a critical crossroads. Whether Tesla emerges stronger under new leadership or Musk reclaims his focus, the saga underscores the volatile intersection of innovation, politics, and investor trust in the EV giant’s journey forward.