'He Can't Even Tell He's An Idiot:' Elon Musk Furious As Ross Gerber Accuses Tesla CEO's 'Toxic' Behavior For 'Crappy' Q1 Sales And Demands Board Overhaul (UPDATED)

Editor's note: This story was updated with Elon Musk's reaction to Gerber's comments.

Gerber Kawasaki Wealth and Investment Management CEO Ross Gerber slammed Tesla, Inc. TSLA CEO Elon Musk for the company’s dismal first-quarter performance on Tuesday, grabbing Musk's attention in the process.

What Happened: “Basically Tesla can’t sell its cars due to Elon’s behavior. Let’s stop blaming the Houthi rebels or German environmental terrorists. Or a recession that never came. Or interest rates,” Gerber said. “Only one person [is] responsible for this,” he added.

Gerber's firm, Gerber Kawasaki, holds 3,000 Tesla shares valued at roughly $500,000 in its flagship actively-managed exchange-traded fund AdvisorShares Gerber Kawasaki ETF GK, with Tesla representing a portfolio weighting of 2.37%.

Expressing a bearish sentiment towards Tesla, Gerber warned of potential downward revisions of future earnings estimates following the first-quarter delivery miss, anticipating analysts to adjust their 2024 and 2025 EPS estimates accordingly.

See Also: Everything You Need to Know About Tesla Stock

Tesla CEO Reacts: Musk reacted to Gerber's criticism by labeling him an "idiot" and highlighting a sales decline at Chinese EV maker BYD Co. Ltd. BYDDY BYDDF, hinting that Tesla's struggles were not unique. "He’s such an idiot that he can’t even tell he’s an idiot. BYD sales dropped by 42% from last quarter. This was a tough quarter for everyone," Musk said on X.

What More Does Gerber Want? “Unfortunately Tesla shareholders are paying the price for the reality Elon has created,” he added. “For over a year I’ve been warning about this potential reality. Now it’s here. It’s time for shareholders to assess the blame where due."

“The Tesla BOD should be replaced immediately with independent directors as required by law," he added.

In an interview with Fox News, Gerber criticized Tesla's board for its lack of independence and failure to address Musk's controversial Twitter behavior, which he claimed had damaged the brand. 

“They, basically all work for Elon and we know it,” Gerber said.

Tesla’s EVs are best in terms of quality and performance and despite the fact if the company can’t sell vehicles, it is due to its CEO, the fund manager said. The problem is not about production but it is about sales, he added.

When asked if Musk would be successful in increasing his stake in the EV maker, Gerber said, it is unlikely, given he might have to comply with restrictions such as giving up his role at Twitter and becoming the sole CEO of Tesla.

Tesla ended Tuesday’s session down 4.90% to $166.63, according to Benzinga Pro data.

Check out more of Benzinga's Future Of Mobility coverage by following this link

Read Next: Cathie Wood's Ark Invest Unfazed By Tesla's Big Q1 Sales Miss, Hoards $39M Of EV Giant's Stock Tuesday — Nvidia Offloading Continue

Image via Shutterstock