Elon Musk is no stranger to controversy, but his latest political entanglements are pushing some of Tesla’s biggest investors to a breaking point. Two of the automaker’s top backers, Dan Ives of Wedbush Securities and Ross Gerber of Kawasaki Wealth Management, are publicly calling for Musk to either step away from his role in the Trump administration or resign as Tesla’s CEO altogether. With Tesla’s stock plunging for the eighth consecutive week and brand damage spreading globally, the pressure on Musk has reached unprecedented levels.
Musk, who has aligned himself more closely with right-wing politics in recent years, currently serves as head of the Trump administration’s Department of Government Efficiency (DOGE). His work in Washington, particularly his involvement in mass federal job cuts, has fueled controversy. But things escalated further when Musk made a widely criticized gesture resembling the Nazi “sieg heil” salute during a Trump inauguration event.
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Dan Ives believes Tesla has reached a critical inflection point, stating that Musk must decide between his political ambitions and the automaker’s future. Gerber, on the other hand, suggests it’s already too late. “I think Tesla needs a new CEO, and I decided today I was going to start saying it,” he declared.
Tesla initially benefited from Trump’s re-election, with shares soaring to a 52-week high of $488.54 in mid-December. However, the momentum quickly reversed. The company’s stock has plummeted since then, with investor confidence shaken by Musk’s political involvement and a series of high-profile setbacks, including Tesla’s eighth recall of the troubled Cybertruck.
Adding to the turmoil, Tesla is facing protests and vandalism at its dealerships across the U.S. Swastikas have been carved into Cybertrucks and other models, while European sales have taken a massive hit—down 50% overall and a staggering 75% in Germany. France has seen Tesla vehicles torched, and in Canada, officials are calling for steep tariffs against the automaker. Even the Vancouver International Auto Show has banned Tesla from participating this year.
As backlash intensifies, President Trump has stepped in to defend Musk, staging a March 11 event on the White House lawn to endorse Tesla. While the event was framed as Trump announcing his own Tesla purchase, it quickly turned into an infomercial for the brand. Treasury Secretary Howard Lutnick later appeared on Fox News, encouraging viewers to “buy Tesla,” further fueling concerns about ethical conflicts.
Musk has long juggled multiple ventures, including SpaceX, Neuralink, and The Boring Company, but his deepening political entanglements appear to be stretching him to the limit. He recently admitted on Fox Business that running his companies has become “greatly difficult.” Meanwhile, investors are growing wary.
JP Morgan has downgraded Tesla’s stock forecast, and Ives warns that the company is facing a “brand tornado crisis moment.” Gerber is even more direct, stating that Tesla cannot recover with Musk at the helm. “It’s time for somebody (else) to run Tesla,” he said.
With protests against the automaker escalating—including a planned global “Tesla Takedown” event on March 29—Musk may soon have no choice but to make a decision. If Tesla’s freefall continues, shareholders could ultimately force his hand, marking a dramatic shift in the automaker’s leadership and future direction.
