A major Tesla investor has called on the company’s board to oust Elon Musk as CEO in an interview with Newsweek.
Newsweek has reached out the auto manufacturer for comment via email.
Why It Matters
Musk, the world’s richest person, has taken on a visible role in President Donald Trump‘s second administration, leading the Department of Government Efficiency (DOGE). But his political involvement has caused concern for investors and Tesla’s stock has floundered throughout 2025.
Tesla shares have dropped 37 percent so far in 2025 as Musk has faced criticism and protests for some of his political remarks and actions. There have been a growing number of reports in recent weeks about vandalism toward Tesla vehicles.
Photo-illustration by Newsweek/Getty
What To Know
Tesla investor Ross Gerber, the CEO of Gerber Kawasaki Wealth and Investment Management, told Newsweek it’s time for the Tesla board to remove Musk as CEO in a phone interview Thursday evening.
Gerber owns more than 250,000 shares of Tesla stock, which was valued at $248.71 per share at close on Friday.
When asked if Musk should be removed as the CEO of the leading electric car manufacturer, Geber responded “absolutely,” adding that the board should not have even let him purchase Twitter, now X, without appointing another person to lead Tesla.
“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.
“They’re not going to do anything he doesn’t say,” Gerber said.
For years, he said, Tesla had a “very high premium” attached to its brand because of Musk’s leadership, but that the CEO has now become “detrimental to the company” and has caused the stock to drop.
A share of Tesla stock was worth more than $475 per share just before Christmas.
Gerber previously called on Musk to step away from the company during an interview Sky News.
Another major Tesla investor, Christopher Tsai, told Newsweek that he does not want to see Musk removed as CEO.
While Musk does “introduce a fair amount of noise,” Tsai said he has the “highest regard” for the company’s CEO. He said he hopes Musk’s involvement with DOGE will be “temporary,” and believes it will be, based on his past actions.
“We are unequivocally opposed to any effort to remove Elon as CEO. He has created immense value for shareholders and has consistently demonstrated an unparalleled ability to manage multiple ventures successfully,” he said. “Elon is a visionary of this generation, and as fiduciaries, it is our responsibility to align our clients’ capital with the highest-quality businesses we can identify and understand.”
His firm, Tsai Capital, has made about six times his initial investment in Tesla in 2020, he said.
“The returns he has generated for our clients speak for themselves,” he said.
The comments come as some Tesla executives and board members have sold significant parts of their share in the company.
Musk responded to Tesla suffering a $16 billion market hit in an interview with Fox Business earlier in March.
“But look on the bright side!” Musk said, quoting Monty Python. “Always look on the bright side of life!”
He also addressed a wave of vandalism targeting Tesla in a Fox News interview earlier this week.
“We’ve never done anything harmful, I’ve never done anything harmful,” he said. “I’ve always done productive things. So there’s some kind of mental illness thing going on because this doesn’t make any sense.”
How Can the Tesla Board Oust Musk as CEO, and Is It Likely?
Tesla shareholders don’t have the power to directly vote to remove the CEO in the company’s corporate structure; instead, that would lie with the board. But shareholders may be able to influence the board if they believe Musk’s leadership “endangers their investment,” David Park, professor of entrepreneurship at Syracuse University, told Newsweek.
“An ouster would likely occur if enough board members—facing pressure from large investors—determined that Musk’s actions or controversies significantly harmed Tesla’s performance or reputation,” he said.
The ouster would likely unfold with the board citing a “breach of fiduciary duty, unacceptable risk, or a severe decline in financial performance tied to Musk’s leadership,” Park said. Then, they would recruit a new executive with “operational expertise and a less polarizing public profile.”
It could, however, also “alienate loyal retail investors and create substantial market shock,” he said.
Park, however, said its “unlikely” they would fire the founder at this point, as he has “consistently delivered on ambitious growth targets” over the years, and he’s not facing “large-scale investor results” at this point.
“Yet, with Tesla’s valuation now under significant pressure, a prolonged downturn could amplify concerns about Musk’s leadership. If shareholders begin to view his actions as liabilities rather than assets, the board may face increased pressure to reassess his role,” Park said.
As of the end of February, Musk owned about 12 percent of Tesla, a major source of his wealth along with other companies like SpaceX and X.
Dismissal of a CEO is “very uncommon,” Jeffrey Born, a professor of finance at Northeastern University, told Newsweek, noting that while the large decline in Tesla shares may make it “more likely,” it would still be rare.
Born said any efforts to fire Musk would likely be met with a legal challenge, and there could also be instead a scenario where Musk willingly steps down to get separation compensation and his spot on the Tesla board.
Michael Barnett, professor of management and global business at Rutgers University, told Newsweek the prospects of a Musk ouster would become “increasingly likely” if Tesla stock doesn’t rebound soon. He suggested an interim CEO could be appointed to share responsibilities while Musk continues his work in the White House.
Is Firing Musk a Good Idea? Experts Weigh In
Born said that while a Musk firing may cause some critics to “cheer in the short term,” it’s less clear that would be the the best strategy in the long term.
“A focused Elon Musk at Tesla might be the best path to the long-term success of the company. However, can the Board of Tesla get Elon to refocus his attentions primarily on Tesla? One would think a $56 billion pay package would do the trick, but apparently it is not in this case,” he said.
Dirk Hackbarth, professor of finance at Boston University’s Questrom School of Business, told Newsweek that firing Musk would also be costly for shareholders because it would bring heightened uncertainty and risks associated with a transition in leadership. Some projects that aren’t patent-protected would also be moved away from Tesla, he noted.
“The best resolution would be a gradual transition of power, in which Musk steps back voluntarily while helping another internally respected and externally known tech visionary (e.g., Tesla’s CTO) to assume Musk’s role,” he said.
Barnett said he believes it is “well past time” to oust Musk.
“In fact, I don’t think it’s even reasonable for him to be in this role, given his government position. It is a massive conflict of interest, against the American public,” he said. “At minimum, Musk should ask the Tesla Board to appoint an interim CEO.”
What People Are Saying
Marcel Kahan, a New York University law professor, to Newsweek: “There are many shareholders who are strong devotee of Musk. Despite the recent decline in Tesla’s stock price, the company has in the past done extraordinarily well under Musk and whatever shareholders may think about Musk politically, the fact that he made many shareholders rich will temper any opposition to him.”
Kelly Shue, a Yale University professor of finance, to Newsweek: “I don’t think a forced removal is likely, although the news cycle surrounding Elon Musk is so volatile that I can’t predict anything with confidence. Tesla investors voted to restore Musk’s pay package just last June, which I interpret as strong shareholder support for Musk.”
What Happens Next
Most experts said Musk is unlikely to be ousted by the Tesla board. Whether the company’s stock manages to rebound over the coming weeks and months is yet to be seen.