According to Gerber, the company's problems arose because Musk is spreading his efforts across many areas. He believes this prevents him from effectively managing Tesla. The investor also suggested that due to his work on social network X and his new position in the American government, Musk simply has no time left for the automaker.
Since December 2024, Tesla's market capitalization has shrunk by more than $800 billion, which has been a serious blow to the business. Gerber emphasizes that despite Tesla still being a leading player in the electric vehicle market, demand for its cars has noticeably fallen. He cites Musk's controversial image as CEO as the reason.
"Elon Musk has simply destroyed the company's reputation. Sales are rapidly declining, so this is definitely a crisis," Gerber stressed. He is convinced that even a strong product will not succeed if the CEO becomes such a polarizing figure.
Gerber outlined two possible ways out of the situation. The first is that Musk fully focuses on Tesla and reduces his involvement in other projects. The second is to choose a new CEO, and Musk can continue to deal with the government and his other affairs.
For Tesla, the leadership issue is becoming decisive. If Musk does not make a decision, the company may face even more serious challenges. So he will have to choose: either remain at the helm of the auto giant, or hand over the reins to another person.
