March 22, 2025
Newsweek recently published an article featuring Dirk Hackbarth, Professor of Finance, discussing how a major Tesla investor, Ross Gerber, has called on the company’s board to remove Elon Musk as CEO, citing concerns over Musk’s political involvement and its impact on Tesla’s brand and stock value, which has dropped 37% in 2025.
Musk’s role in Trump’s second administration, leading the Department of Government Efficiency (DOGE), has raised investor concerns and led to public backlash, including Tesla vehicle vandalism. Investor Ross Gerber criticized the board for not restraining Musk’s behavior or appointing new leadership after his Twitter (now X) purchase. Meanwhile, investor Christopher Tsai opposes removing Musk, praising his vision and shareholder value. Although the board can remove Musk if his actions harm Tesla, experts consider this unlikely due to his past success and strong influence.
“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,” Hackbarth adds.
Despite the controversy, most experts believe Musk’s ousting remains unlikely unless Tesla’s stock continues to decline significantly.
