Elon Musk, perhaps the most powerful and divisive tech figure, is facing increasing pressure from Tesla shareholders. Ross Gerber, a Tesla shareholder dating back to way back when and Gerber Kawasaki Wealth and Investment Management Chief Executive Officer, has publicly called for Musk's ouster as Tesla CEO. In Gerber's view, Musk's leadership and focus have been greatly diminished since his acquisition of Twitter, now known as X, causing Tesla's brand image and stock price to plummet.

Let us break down in detail why one of Tesla's major investors is calling for Musk to be ousted and what it could mean for the future of the company.

Why is Ross Gerber Calling for Musk's Ouster?

1. Twitter Distraction & Tesla's Slipping Stock

Gerber first voiced concerns last December, when Tesla's shares dropped more than 60% after Musk's well-publicized $44 billion buyout of Twitter. Musk needed to liquidate a big chunk of his Tesla holdings to raise the cash for the deal, which depressed investor sentiment. Investors have held similar views since, thinking Musk has overextended himself, overseeing a slew of firms—Tesla, SpaceX, X (the old Twitter), Neuralink, and The Boring Company—at the expense of Tesla's growth.

2. Brand Damage Caused by Musk's Social Media Presence

Gerber has also spoken about Musk's inflammatory political and social media remarks, arguing that they have done enormous reputational harm to Tesla. He argues that the Tesla board has been "wildly negligent" for doing nothing to stop Musk's actions, which have caused brand damage and public outrage. Besides, he added, "It's been wildly negligent that the board has done nothing to curb Elon's behavior, especially around extremist statements."

3. Tesla Requires Focused Leadership

As a shareholder of more than 250,000 Tesla shares, Gerber feels that Tesla's core businesses have been "overlooked for too long." The business requires someone who can devote single-minded attention to its businesses, he contends. "Elon Musk has only 24 hours a day, and he has spread his time too thin since he took over Twitter," Gerber said.

He said that Musk must either commit fully to Tesla or resign to let a new CEO take over to propel the company forward.

Will Tesla's Board fire Musk?

Although Musk's complaints are backed by the majority of investors, his ouster as CEO is not so easy. The Tesla board is highly pro-Musk, and some have accused it of acting mostly in his interest. Gerber himself has raised doubts about the board's interest in taking action, labeling it as "highly compensated by Musk" and not likely to act against him.

Yet investor discontent continues to mount. As Tesla confronts rising competition in the electric vehicle sector, leadership errors can adversely affect its long-term dominance.

What Does This Mean for Tesla's Future?

Potential Leadership Change – If the pressure continues, Tesla can look at hiring a co-CEO or a new chief to handle day-to-day operations while Musk stays in a strategic role.

Volatility in the Stock Market – Tesla's stock can experience more fluctuations, depending on the response of the board and Musk to shareholder concerns.

Brand Perception Effect – Tesla's brand would be enhanced if the company has a new CEO whose emphasis is innovation and customer confidence, untainted by Musk's incendiary social media track record.

Final Thoughts: Should Musk Remain or Depart?

Musk's brilliance cannot be denied—he has made Tesla the world EV leader. But as Tesla shares falter and investors lose faith, there are reasons to worry about his capacity to lead and run multiple companies. The Tesla board must decide whether Musk's vision is worth the price of his distracted attention and public scandals. The scandal of Musk's leadership at present remains a hotly debated topic of discussion in the technology and business worlds.