A long-time Tesla investor just hit the brakes on his investment — and it's raising questions about what could be ahead for the electric vehicle giant and its customers.
Ross Gerber, a high-profile investor and former Tesla board nominee, says he dumped more Tesla stock in response to CEO Elon Musk's recent political rift with President Donald Trump and ongoing concerns about the company's leadership and direction.
What's happening?
Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, announced he's selling off more Tesla stock after Musk's spat with Trump over a budget bill. On June 5, amid the feud, Tesla shares plummeted 14%, wiping out $150 billion in market value in a single day — Tesla's worst day since March.
Gerber called the feud a "disaster" for Musk's leadership, criticizing his erratic style and the Tesla board's inaction. "The board isn't going to do anything. Nobody's going to protect Tesla shareholders," he stated.
This follows earlier moves by his firm, which offloaded $60 million in Tesla stock in 2024 and sold another 26,000 shares in Q1 2025 as he steadily reduced his stake.
Why is this sell-off important?
When high-profile investors start walking away, it can shake consumer confidence — especially for a company as tightly linked to its CEO as Tesla is. A plunging stock price often signals deeper issues, like declining sales or brand damage, which can lead to higher car prices or fewer options for buyers.
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It could also have environmental consequences. As EV prices rise, clean cars become less accessible — and that can slow down the shift away from gas-powered vehicles. Tesla has already faced backlash for raising prices on the Model S and Model X.
What's being done about it?
Gerber says he's still rooting for Tesla to succeed and wants to see the company refocus on what made it stand out: building world-changing technology.
In the meantime, drivers have more choices than ever. If you're shopping for an EV and feeling uncertain about Tesla's direction, there are plenty of alternatives to consider. You can explore your options with this guide to making your next car an EV.
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