Long-time Tesla investor Ross Gerber, the CEO of Gerber Kawasaki Wealth and Investment Management, who called for Elon Musk’s exit from the company has now said that the Tesla Board should have never let him purchase Twitter as that started Elon Musk’s distraction from 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.”
Gerber’s statement came as shares of Tesla dropped in the wake of massive protests against Elon Musk inside the country and also outside. Hundreds of Tesla vehicles have been set on fire showing anger against Elon’s interference in the government decisions. The arson incidents are being treated as ‘domestic terrorism’ by the Donald Trump administration who sympathized with Elon at this time of crisis.
Elon, however, brushed aside the emergency and adviced shareholders to hold on to their shares — in a surprised all-hands meeting of Tesla.
Gerber said the Tesla Board can’t do anything against Musk as it solely functions for the benefit of Elon and is highly compensated by him. “They’re not going to do anything he doesn’t say,” Gerber said.
Can Elon Musk be removed as CEO?
Newsweek reported that Tesla shareholders don’t have the power to directly vote to remove the CEO. But they could influence the Board if they believe Musk’s leadership endangers their investment. “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,” David Park, professor of entrepreneurship at Syracuse University, told Newsweek.
Gerber believes Tesla is suffering because of Elon Musk’s involvement with the Department of Government Efficiency — the department that he has been leading solely after Vivek Ramaswamy’s exit. DOGE has a mandate to cut the government spending within a year and after that DOGE is supposed to stop functioning.
