Tesla stock has taken a beating in recent days, and longtime investor Ross Gerber says there’s one person to blame: Elon Musk.
Musk’s public fallout with President Donald Trump has sparked concern among Tesla investors. Tesla shares dropped 14% last Thursday, and Gerber believes this is just the beginning.
In a series of posts on X and an interview with Yahoo Finance, he was very critical.
“Amazingly Elon now [is] attacking all the people he helped put in power,” Gerber posted on June 4.
He said Musk supported ending EV tax benefits and backed politicians who now threaten Tesla’s success.
“This should work out well for Tesla I’m sure,” he added sarcastically.
‘A Disaster of Epic Proportions’
Gerber says Musk’s feud with Trump is a huge misstep.
In his words, “This is a disaster of epic proportions for Tesla and SpaceX.”
According to Gerber, Musk’s image and government ties used to add value to Tesla stock, a phenomenon he calls the “Elon premium.”
Now, that benefit is crumbling.
“Whether Elon wants to accept it or not, he did help Trump get elected; it is his fault that Trump is the president of the United States,” Gerber said during the interview.
EV Credits in Jeopardy
One of Gerber’s main concerns is Trump’s plan to eliminate electric vehicle tax credits.
“This is the death blow to Tesla,” he said, pointing out that removing the $7,500 incentive will make Teslas harder to sell as demand is already soft.
Musk has publicly said Tesla doesn’t need the credits. Gerber strongly disagrees: “Of course they need the tax credits.”
‘Now No One Will Buy a Tesla on Any Side’
Gerber also challenged the idea that conservative buyers would fill the gap if progressives abandon the brand. “
We can also end that silliness that MAGA would buy Teslas to make up for the shortfall from the left,” he wrote.
“Now no one will buy a Tesla on any side.”
He also mocked Musk’s ongoing online behavior: “Can someone please take the phone away from him! Tesla is getting destroyed.”
Investor Fallout and Lawsuit Talk
Gerber said his firm once owned over 500,000 Tesla shares but now holds less than half. On the day of the stock drop, he claims to have personally lost over $10 million.
He also warned that Tesla’s board could face lawsuits for “utter and complete negligence.”
Elon vs. Trump: A Losing Battle?
Gerber doubts Musk can win a public feud with Trump. Responding to a user who said Musk has wide support, Gerber fired back, “What makes you think anyone supports Elon? Fake Twitter? People support Trump.”
In another post, he wrote, “Trump is an angry and vindictive man who doesn’t forget when slighted. This doesn’t get solved other than Elon groveling back and publicly apologizing.”
Gerber believes Tesla is now in a tough spot, with investor confidence shaken and political tensions adding pressure. He says the fallout from Musk’s actions could hurt sales, drive away both left-leaning and conservative customers, and invite further political backlash.
Combined with financial losses and possible legal issues for the board, Gerber says the company’s outlook has become increasingly uncertain.
IMAGE CREDIT: “Elon Musk” by Gage Skidmore, via Flickr. Licensed under CC BY-SA 2.0. Image adjusted for layout.