Concerns are rising among investors regarding Elon Musk’s decreased focus on Tesla, with some critics arguing that his attention is divided among various other projects. Ross Gerber, a longtime shareholder of Tesla and CEO of Gerber Kawasaki Wealth & Investment Management, recently expressed his dissatisfaction with Musk’s priorities.
What’s Happening
Gerber stated that it’s clear Musk doesn’t care about Tesla, citing his involvement in other ventures such as X AI. This comment sparked a backlash from retail investors, but Gerber defended his criticism, saying he’s being attacked due to Musk’s behavior. Tesla’s stock has declined 33% year-to-date, and Gerber believes this is linked to Musk’s reduced involvement with the company.
Impact on Tesla’s Performance
Tesla continues to lead the US EV market, but its sales fell 8.6% year over year in the first quarter of 2025. Meanwhile, the overall market expanded 11.4%. Analysts like Dan Ives from Wedbush Securities have also expressed concerns about Musk’s absence from Tesla, citing his focus on other projects such as his role in the Department of Government Efficiency (DOGE).
Investor Reactions
Despite the criticism, Gerber maintains Tesla holdings for his clients, believing that the company has the best products and that something will eventually fix itself. However, patience is wearing thin among Tesla investors, and some are starting to question Musk’s priorities.
Key Points
- Elon Musk’s decreased focus on Tesla is sparking concern among investors
- Tesla’s stock has declined 33% year-to-date
- The company’s sales fell 8.6% year over year in the first quarter of 2025
- Analysts are questioning Musk’s priorities and his absence from Tesla
Conclusion
As the electric vehicle market continues to evolve, Tesla’s performance will be closely watched by investors. With Musk’s attention divided among various projects, it remains to be seen how the company will fare in the coming months. One thing is certain, however: investors are growing increasingly impatient with Musk’s lack of focus on Tesla.