Tesla Investor Says Elon Musk Could Be Behind Report He’s Getting Ousted
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Tesla investor Ross Gerber told Newsweek that he believes Elon Musk could be behind The Wall Street Journal report that the electric-vehicle manufacturer’s board has considered ousting him as CEO.
Newsweek reached out to Tesla for comment via email on Friday.
Why It Matters
Tesla has faced backlash amid Musk’s involvement in President Donald Trump’s administration and the Department of Government Efficiency (DOGE). The company’s stock has tumbled 25 percent this year amid boycotts from potential consumers and several instances of vandalism targeting Tesla vehicles.
The Journal reported this week, citing “people familiar with the discussions,” that the Tesla board has considered removing Musk as the company’s CEO amid the political backlash. Both Musk and the Tesla board have denied the report.
Musk, in a post to X, formerly Twitter, wrote that it is an “EXTREMELY BAD BREACH OF ETHICS” that the Journal would “publish a DELIBERATELY FALSE ARTICLE and fail to include an unequivocal denial beforehand by the Tesla board of directors!”
What To Know
Gerber, in a phone interview with Newsweek on Thursday, said he believes it is possible Musk himself could have been behind the report. Musk, however, has not publicly indicated that he is interested in stepping away from Tesla.
“This news is basically because Elon is probably looking for someone to replace him at Tesla,” Gerber told Newsweek.
Elon Musk attends a House Republican meeting in Washington, D.C., on November 13, 2024. Elon Musk attends a House Republican meeting in Washington, D.C., on November 13, 2024. ALLISON ROBBERT/POOL/AFP via Getty Images
Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, owned more than 250,000 shares of Tesla stock as of March. In August 2024, he told Business Insider that he dumped $60 million of stock in the company. He previously called for the Tesla board to oust Musk as CEO.
He said he believes Musk could be removed as the company’s CEO but take over as board chair, still allowing him to exert influence and control behind the scenes. A Musk confidant like JB Straubel could then replace Musk as CEO, he said.
This could allow the company to have enough of a “marketing separation” from Musk to mitigate backlash and get consumers to return to purchasing Tesla products, while also giving Musk the opportunity to focus on working on other endeavors like xAI, Gerber said.
Gerber said he would be supportive of the move. Investors want to see how Musk can “still be a driving force” for the company but want a “less visible approach” to his involvement, he said.
“That’s exactly what needs to happen and that’s what happens everywhere else. Elon’s not all of the sudden not going to get control. He needs a visible CEO,” he said.
During a Tesla earnings call in April, Musk said he plans to reduce the amount of time he is spending at DOGE, and refocus his efforts on Tesla, in the coming months. He still plans to spend a day or two each week at the department, he added.
What People Are Saying
Tesla Chair Robyn Denholm wrote on X: “Earlier today, there was a media report erroneously claiming that the Tesla Board had contacted recruitment firms to initiate a CEO search at the company. This is absolutely false (and this was communicated to the media before the report was published). The CEO of Tesla is Elon Musk and the Board is highly confident in his ability to continue executing on the exciting growth plan ahead.”
The Journal, in a statement reported by Axios: “We stand by our reporting. Tesla was given the opportunity to provide a statement before publication, which they did not do.”
What Happens Next
Musk said last month that he would return to Tesla in May and continue his work for DOGE, while not indicating that he plans to step away from the company in the near future. Tesla’s stock rebounded a bit following news of his return.
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