Tesla shares plunged nearly seven percent Monday, wiping out $68 billion in market value, as CEO Elon Musk political move drew sharp criticism from top investors. Longtime supporters voiced concerns that Musk’s push to launch an “America First” political party — seen as a direct challenge to President Donald Trump — is undermining Tesla’s focus and future.
Ross Gerber, co-founder of Gerber Kawasaki and a vocal Tesla bull, condemned the company’s leadership in a public post, calling the board “a joke” and accusing members of enabling Musk’s distractions. “Elon vampires sucking the blood of Tesla equity,” Gerber wrote, warning that shareholders are bearing the cost of Musk’s personal agenda.
The backlash intensified as Dan Ives of Wedbush Securities, another key Tesla investor, warned that Musk’s return to politics is “the exact opposite of where you wanna see him.” Ives cautioned that Musk could become “a foe” to both President Trump and the Republican Party, which could create further complications for Tesla — especially regulatory ones.
“You cannot have Musk start his political party and remain CEO of Tesla,” Ives said during a CNBC interview. He called for the board to step in, suggesting Musk’s behavior could force a breaking point in his dual roles as CEO and political activist.
Investors are growing increasingly uneasy about the impact of Musk’s personal priorities on Tesla’s stock. The political distraction comes at a time when Tesla is already navigating economic headwinds, international competition, and increased scrutiny from regulators.
Tensions between Musk and President Trump appear to be escalating as the 2024 election season intensifies. Critics argue Musk’s new political push undermines the conservative principles many Tesla shareholders support, while alienating both political and business allies.
