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By Andrew Stanton
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Elon Musk is facing pressure from Tesla's biggest investors over his involvement in President Donald Trump's administration.
Newsweek reached out to Tesla for comment via email.
Why It Matters
Musk, the founder of Tesla, has taken on a visible role in President Donald Trump's second administration, leading the Department of Government Efficiency (DOGE), established by Trump through executive order on his first day back in the Oval Office. Trump tasked DOGE with "modernizing Federal technology and software to maximize governmental efficiency and productivity."
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But Musk's involvement in politics isn't necessarily playing well with investors, as Tesla's stock has dropped 38 percent since the turn of the year. Polls suggest that many Americans don't view Musk favorably, even if they do support some of DOGE's goals.
What To Know
Two Tesla investors have now raised concerns about how Musk's involvement in politics may be affecting the company's bottom line, pressing the CEO to appease shareholders.
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Ross Gerber, a major investor in the company, is the latest to go public with his concerns about Musk.
"Elon chooses to work all the time, but you could only work so many hours a day, so it's 24. And he sleeps. So there's no question he's been committed to his job at the government, and that's where he's spending his time," he said. "He's not running Tesla."
He continued: "That's where I'm going to say it. I think Tesla needs a new CEO, and I decided today I was going to start saying that."
Gerber said the business has been "neglected," calling on Musk to either "come back to Tesla and be the CEO of Tesla" or "focus on the government and keep doing what he's doing, but find a suitable CEO for Tesla."
His comments come after a separate investor, Christopher Tsai, told The Guardian that the market is "reacting unfavorably to Elon Musk's recent involvement in politics."
"I hope his involvement with [DOGE] is short-lived so he can spend even more time on his businesses," Tsai told the publication.
While other investors haven't publicly commented on Tesla, several have sold off more than $100 million worth of stocks in the company, according to filings with the U.S. Securities and Exchange Commission.
Tesla's stock rebounded a bit on Wednesday, increasing about 4.7 percent by close but still remains low compared to the start of the year.
Sales have dropped as Musk's actions in the Trump administration continue alienating potential customers.
In 2024, Tesla sales dropped 1.1 percent, the company's first decline in over a decade, reported the Associated Press. Some Tesla owners are trying to sell their vehicles, potentially triggering a drop in prices in the used car market.
What People Are Saying
JPMorgan analysts wrote in a note to clients last week, per CNN: "We struggle to think of anything analogous in the history of the automotive industry, in which a brand has lost so much value so quickly."
Musk, on Fox News: "Tesla is a peaceful company; we've never done anything harmful, I've never done anything harmful; I've always done productive things. So there's some kind of mental illness thing going on because this doesn't make any sense."
What Happens Next
It's unclear how Musk will respond to the pressure from Tesla investors, and whether he will make any changes to how he balances running Tesla and his work with DOGE.
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