Tesla Sales Numbers 'Suck,' Says Ross Gerber. He Claims The Tesla Brand Is Broken Because Of The Board That Should Be Removed For Negligence

Tesla Inc. TSLA is taking heat week after week from one of its most outspoken investors. Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, came out swinging after the company reported weak sales in first quarter for some of its high-end electric vehicles.

Sales Dip Adds Fuel to the Fire

These numbers suck. Tesla other models (Cybertruck, S and X) sold only 12,881 versus last year 17,027. This is down 25%. The high end EV business has totally eroded. The cybertruck is basically not selling. The brand is broken and may not be fixable. The BOD is 100% responsible…

— Ross Gerber (@GerberKawasaki) April 2, 2025

“These numbers suck,” Gerber wrote on X,  referring to Tesla's Cybertruck, Model S and Model X, which he says sold just 12,881 units—down 25% from the 17,027 sold in the same period last year. “The high-end EV business has totally eroded. The Cybertruck is basically not selling. The brand is broken and may not be fixable.”

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Calls for Leadership Change

Gerber pinned the blame squarely on Tesla's board: “The BOD is 100% responsible and should be removed for negligence,” he said.

His frustration isn't new, but it appears to be intensifying. In a recent CNN interview, Gerber said, “There isn't more that Elon could do to turn off customers from Tesla. I really don't think there's more he could do to turn off customers from Tesla. I really don't think there's more he could do.”

He also criticized Musk’s growing political presence, including his involvement in President Donald Trump's administration. Gerber suggested that Musk is more focused on his government role than on running Tesla.

“If he's going to work in the government, I'm all for it,” Gerber said. “But then why isn't somebody else running Tesla?”

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Marketing Crisis and Brand Damage

Gerber said Tesla's biggest issue now isn't just about operations. “It's the image and marketing problem that the company now has, which in my mind is in a crisis at this point.”

He pointed to incidents like vandalism and protests at Tesla showrooms as signs of a brand in serious trouble. “Literally terrorist attacks on Tesla showrooms. People burning the most environmentally friendly vehicle ever made.”

Even the much-hyped Cybertruck, once marketed as bulletproof and indestructible, has seen eight recalls, including one over panels that can peel off while driving.

Criticism of Robyn Denholm

Gerber also blasted Tesla Chair Robyn Denholm, accusing her of failing to act in the interest of shareholders. “Robyn Denholm is the woman paid off to do NOTHING to protect the 83% of Tesla investors she is negligently representing. She only represents one shareholder, Musk,” he posted on X last month.

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Since joining Tesla's board in 2014, Denholm has earned an estimated $682 million in cash and stock, according to a Reuters analysis. She has already sold about $532 million worth of Tesla shares, some as recently as early March, right before Tesla's stock plunged.

A Delaware judge recently criticized her for approving Musk’s record-setting $56 billion pay package, writing that “outsized director compensation can compromise independence.”

Can Tesla Bounce Back?

Tesla reported its first-ever annual sales decline in 2024, and its stock has dropped more than 29% year-to-date, at the time of writing. While Musk has promised to double U.S. vehicle production over the next two years, many investors remain skeptical.

“I warned about this a year ago,” Gerber said. “Tesla needed to work to separate itself from Elon… now it might be too late.”

For now, the pressure is mounting. As Tesla’s challenges grow, so do questions about whether its leadership and brand can recover.

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