Tesla’s Biggest Investor Ross Gerber Dumps All Shares and Predicts Total Collapse Soon

Ross Gerber, once one of Tesla's most vocal supporters and a major investor in the company, has made a stunning move that is shaking the foundations of the electric vehicle giant. In the first quarter of 2025, Gerber sold over 26,000 shares of Tesla, amounting to roughly 10% of the holdings managed by his wealth management firm, Gerber-Kawasaki. This decision marks a dramatic reversal for Gerber, who had long been an ardent supporter of Tesla and CEO Elon Musk.

Gerber’s bold move has raised eyebrows across the financial community, especially considering his history as one of Tesla’s biggest bulls. In fact, Gerber had previously been one of the strongest advocates for Tesla’s stock, even predicting that the company’s stock would continue to soar.

However, after witnessing a series of setbacks and what he describes as mismanagement within the company, Gerber has pulled the plug entirely. His decision to liquidate his Tesla holdings has come with an ominous prediction: Tesla is facing a total collapse unless there is a dramatic shift in its direction.

Gerber had initially predicted that Tesla’s stock could drop by as much as 50%, a forecast that turned out to be eerily accurate. Following the controversy surrounding Elon Musk’s widely criticized Nazi-style salute during Donald Trump’s inauguration, Tesla’s stock plunged by as much as 43%. Although Tesla shares have recovered somewhat since then, Gerber remains skeptical about the sustainability of the rebound.

"We certainly haven't changed our view where we would start buying Tesla stock again," Gerber said in an interview with Business Insider. His comment reflects deep concerns about the company’s long-term viability, despite any short-term recovery in stock prices. Gerber’s warning is clear: unless Tesla can demonstrate real, lasting progress, its future looks bleak.

One of the key reasons for Gerber’s pessimism about Tesla’s future is the company’s upcoming Robotaxi service. Scheduled to launch in Austin, Texas, next month, the service could determine the company’s fate in the eyes of investors. “This could be an extremely difficult time for them,” Gerber said.

He emphasized that Tesla must not only successfully launch the Robotaxi service but also convince the public and investors that it has a legitimate, scalable business model. Without this, Gerber fears that Tesla could face an uphill battle to retain its position as a leader in the electric vehicle market.

While Gerber acknowledges that the success of the Robotaxi service could help Tesla turn things around, he remains skeptical that this will happen. The competition in the electric vehicle space is intensifying, with established automakers ramping up their EV production and new players entering the market. If Tesla cannot deliver on its ambitious plans, Gerber predicts that the company will struggle to maintain its position in the industry.

Another major factor in Gerber’s decision to sell his Tesla shares is his frustration with Elon Musk’s leadership. In his latest remarks, Gerber once again called for Musk to step down as CEO, stating that the company’s future would remain uncertain as long as Musk remains in charge. “Unless Musk resigns or is replaced by someone who can actually sell cars,” Gerber warned, “Tesla’s future will remain gloomy.”

Gerber’s comments are not the first time that Musk’s leadership has been questioned. Over the past few years, Musk has faced criticism for his management style, as well as for diverting his attention to other ventures, such as SpaceX, Neuralink, and The Boring Company.

This has led to concerns that Tesla has been left to flounder under Musk’s leadership, particularly as the company tries to scale its operations and meet increasing demand for electric vehicles.

Despite this, Musk has remained adamant about his commitment to Tesla. In a recent appearance at the Qatar Economic Forum hosted by Bloomberg, Musk reaffirmed his position as the company’s CEO, stating that he plans to remain in the role for at least the next five years.

When asked if he saw himself still leading Tesla in five years, Musk responded confidently, “Yes,” adding with characteristic humor, “I can’t be still here if I’m dead.”

Musk’s steadfast commitment to Tesla, however, has not eased the concerns of investors like Gerber, who believe that a change in leadership may be necessary for the company to overcome its current challenges. According to Gerber, the next six months will be a critical period for Tesla, with the potential to either make or break the company’s future.

“I think the next six months will really be make or break for them,” Gerber stated. The pressure is on for Tesla to prove that it can execute its ambitious plans, particularly the Robotaxi initiative, and secure its position as a leading player in the electric vehicle market.

In the meantime, Gerber’s decision to sell his Tesla shares reflects a broader sense of unease in the market. Once a darling of Wall Street, Tesla now faces a host of challenges, from intensifying competition to leadership questions and the uncertain future of its flagship products.

As Gerber has pointed out, the company’s fate may hinge on its ability to adapt and innovate in the face of these challenges.

Elon Musk has also been vocal about cost-cutting measures at Tesla, recently highlighting inefficiencies in the U.S. federal government. Musk suggested that the government wastes about $100 million annually on inactive phone lines, a statement that sparked further debate about the company’s priorities.

While this cost-cutting initiative may be seen as an attempt to streamline operations, it also reflects the broader financial pressure that Tesla is under as it navigates an increasingly competitive landscape.

The financial community is watching Tesla closely as the company approaches its pivotal moment. If Tesla can successfully launch the Robotaxi service and prove that it has a viable business model, it may be able to regain investor confidence and turn its fortunes around. However, if the company fails to deliver, Gerber’s prediction of a collapse could become a reality.

Tesla’s future is now in the balance, and the coming months will be critical in determining whether the company can weather the storm and continue to lead the electric vehicle revolution, or if it will fall behind its competitors in an increasingly crowded market.