Tesla (TSLA) shares crashed 14.3% on Thursday, June 5 amidst a public spat between CEO Elon Musk and President Donald Trump. Musk initially took aim at Trump’s tax-and-spending bill, and Trump responded by threatening to terminate the billionaire’s federal contracts and subsidies. 

And while TSLA is inching back up on Friday as markets digest the public fallout between the U.S. president and the chief executive of Tesla, Ross Gerber, a renowned investor, says “we’re just getting started with the declines.”

Including the Trump-Musk feud driven selloff, Tesla stock is down some 32% versus its year-to-date high. 

Rosser Gerber to Sell Tesla Stock More Aggressively

Ross Gerber has long been a seller of TSLA stock and now that Trump is going after Elon Musk, he’ll sell it even more aggressively in the months ahead, the market veteran told Yahoo Finance in an interview today. 

Gerber expects the billionaire’s feud with the president to prove to be a “disaster of epic proportions” for Tesla stock as “there’s a lot more MAGA supporters out there than Elon supporters.”

Plus, the elimination of EV tax credits under Trump’s “One Big Beautiful Bill Act” will hurt demand that’s already been discouraging for the automaker in 2025, he added.  

TSLA Shares Dubbed Unlikely to Benefit From Robotaxi Launch

Ross Gerber remains bearish on TSLA shares because he believes building a successful robotaxi business will prove significantly more difficult than expected for the automaker.  

The market veteran doesn’t have high hopes for Tesla’s upcoming launch of robotaxi services as “Elon is still in denial that he has a hardware problem – not a software problem.”

Gerber started cutting exposure to the EV stock when Musk first showed interest in buying Twitter. 

At the time of writing, he owns about 235,000 shares of Tesla in total – but that’s down some 60% from more than 500,000 shares held in late 2021. 

Wall Street Now Sees Tesla as Overvalued

Investors should note that Wall Street analysts are no longer bullish on Tesla stock either. 

The consensus rating on TSLA currently sits at “Hold” only with the mean target of about $292 indicating potential downside of some 3% from current levels.