Transformative Impact of Extremist Statements on Tesla’s Reputation

Tesla Investors Clash Over Musk’s leadership Amidst Share Drop and Political Concerns

By Archyde News Team | Published: March 22, 2025

The debate intensifies among Tesla’s stakeholders as the company navigates turbulent waters, facing both financial headwinds and controversies surrounding CEO Elon Musk.

Gerber Calls for Change: “Negligence” in Musk’s Leadership

Prominent Tesla investor Ross Gerber, holding over 250,000 tesla shares, has publicly criticized the company’s Board of Directors for their handling of Elon Musk’s activities, notably his acquisition of Twitter (now X). Gerber’s concerns center around the perceived erosion of Tesla’s brand value and the impact of Musk’s public statements.

“Why was the Board of Directors calm down while so much value of the brand was eroded to the point where cars are set on?” Gerber questioned. “It was extremely negligent that this council did nothing to brake Elon’s behavior, especially in terms of extremist statements.”

Gerber’s pointed criticism highlights a growing unease among some investors regarding Musk’s dual roles and their potential repercussions on Tesla’s performance. The concern is not just about public perception; it’s about the bottom line.Tesla’s stock has taken a significant hit, and investors are seeking accountability.

Share Price Decline and Vandalism Add to Concerns

Tesla’s stock experienced a substantial drop in 2025, declining by 37%. This decline coincides with increased scrutiny of Musk’s political leanings and online behavior. Adding fuel to the fire, reports of vandalism targeting Tesla vehicles have surfaced, raising questions about a potential link between public sentiment and the company’s brand image.

The financial impact of this decline is considerable. A Tesla share, once valued at over $475 before Christmas 2024, has seen its price plummet, causing significant losses for investors. This downturn underscores the urgency of the debate surrounding Musk’s leadership and its influence on market confidence.

Divergent Opinions: Support for Musk Remains Strong

While Gerber advocates for musk’s removal, other significant Tesla investors remain steadfast in their support. Christopher Tsai, a major shareholder, voiced strong opposition to any attempts to oust Musk from his position as CEO.

“We are categorically against any effort to remove Elon from the position of CEO. He has created a huge value for shareholders and has constantly demonstrated an unequaled ability to successfully manage several companies,” Tsai stated, emphasizing Musk’s track record of innovation and value creation.

This divergence of opinion highlights the complexity of the situation. Musk’s supporters point to his visionary leadership and his ability to drive innovation,arguing that his unique skill set is essential for Tesla’s continued success. They contend that removing him would be detrimental to the company’s long-term prospects.

The Mechanics of Removal: The Board’s Role

David Park, a professor of entrepreneurship at Syracuse University, clarifies that Tesla shareholders do not possess the direct authority to remove the CEO. The decision ultimately rests with the Board of Directors.

“A removal would probably take place if enough members of the council – under the pressure of large investors – would determine that Musk’s actions or controversies have substantially affected Tesla’s performance or reputation,” Park explained. However, he considers Musk’s removal “unlikely” at this time, citing his past achievements and the absence of widespread investor discontent.

Park’s analysis underscores the power dynamics at play. While investor sentiment carries weight,the Board’s decision-making process is paramount. The Board must weigh the potential risks and rewards of retaining or removing Musk,considering both financial performance and reputational factors.

Ethics and Conflicts: Expert Perspectives

Michael Barnett, a professor of global management and business at Rutgers University, raises concerns about potential conflicts of interest stemming from Musk’s involvement in governmental initiatives.

“In fact, I do not think it is reasonable for him to be in this role, given his governmental position. It is indeed a conflict of massive interests against the American public,” Barnett asserted, highlighting the ethical considerations surrounding Musk’s dual roles in the public and private sectors.

barnett’s viewpoint adds another layer of complexity to the debate. The potential for conflicts of interest raises questions about accountability and transparency, issues that are increasingly scrutinized in the context of corporate leadership.

The Road Ahead: Uncertainty and Optimism

Despite the ongoing debate and the challenges facing Tesla,most experts believe that Musk is unlikely to be removed from his position. The coming weeks and months will be crucial in determining whether the company’s shares can recover and whether Musk can address the concerns raised by investors.

Musk, known for his resilience and optimism, remains upbeat about Tesla’s future. “But look at the good part!” He said,citing Monty Python. “Always look at the bright side of life!”

The future of Tesla remains uncertain, but the company’s innovative spirit and Musk’s unwavering determination suggest that it will continue to be a major player in the automotive industry. The ability to address investor concerns and navigate the current challenges will be paramount to ensuring its long-term success.

What are the potential long-term consequences for Tesla if Elon Musk’s behavior continues to negatively impact investor and public perception of the company?

Tesla’s Tumultuous times: An Expert’s Outlook on Musk’s Leadership

Archyde News: Welcome, Professor Eleanor Vance. Thank you for joining us today to discuss the ongoing debate surrounding Tesla and Elon Musk’s leadership.

Professor vance: Thank you for having me. It’s a critical moment for Tesla, and I’m happy to offer my insights.

Archyde News: Tesla’s stock has declined significantly in 2025. What factors do you believe are contributing to this downturn?

Professor Vance: Several factors are at play. the financial performance is directly impacted by investor concerns.A meaningful portion of the anxieties, in my view, is related to Elon Musk’s public perception. Investors are also concerned about the potential impacts of his other ventures.

Archyde News: Ross Gerber, a significant Tesla investor, has called for changes in the Board. In your opinion, Professor, what’s the Board of Directors role during these turbulent times for Tesla?

Professor Vance: The Board of Directors has a fiduciary duty to act in the best interest of the company. The board’s obligation is to deal with investor and public perception of Elon. They need to weigh the risks and rewards of Musk’s actions against the interests of other shareholders and the company’s long-term performance. It’s a challenging balancing act, but their decisions will be crucial for Tesla’s future.

Archyde News: Several reports have surfaced detailing vandalism against Tesla vehicles. Could this be related to the public and investor sentiments regarding Elon’s recent activities?

Professor Vance: It’s certainly plausible.Though difficult to quantify, public sentiment can directly effect brand image. Vandalism could be an indicator of dissatisfaction, which may correlate negatively with Tesla’s share value. These issues can have wide reaching consequences.

Archyde News: There’s a wide divergence of opinion, as we certainly know. While some investors support Musk, others are calling for changes. In your estimation, would removing Musk be a viable solution?

Professor Vance: The removal of any CEO is a complex consideration. On one hand, Musk’s vision and innovation in technology are undeniable. His removal could destabilize the company. Many of the investor sentiments may not be shared. though, if concerns over his behavior negatively affect financial performance and the brand’s value, the board may need to take action to ensure its long-term success.

Archyde News: Professor Vance, thank you for giving us your time and insights. It’s been very informative.

Professor Vance: My pleasure.

Archyde News:Thank you to our readers. We would love to hear your thoughts on the subject – Do you believe a change in leadership at Tesla would be beneficial? Share your insights below.