Tesla 's major shareholders controlling 7.9 million shares have sent an urgent letter to board chair Robyn Denholm, demanding immediate action to address what they call a "crisis" at the electric vehicle maker. The coalition, including pension funds, the American Federation of Teachers, and state treasurers from New York, Oregon, and Illinois, issued four specific demands to refocus CEO Elon Musk's attention on Tesla amid declining sales and plummeting brand reputation.
The shareholders blame Tesla's troubles on Musk's divided attention between the company and outside ventures, particularly his recently concluded role at the Department of Government Efficiency (DOGE) under the Trump administration.
Mandate minimum 40-hour work week commitment for Elon Musk
The investors want Tesla's board to require Musk to work at least 40 hours per week at the company as a condition of any new compensation package. This demand comes as Tesla's stock has fallen 12% this year while the Nasdaq declined only 1%. The shareholders noted that Tesla's European sales plunged nearly 50% in April compared to the previous year, and global EV sales declined in the first quarter.
Establish clear CEO succession planning
The letter demands a formal succession plan identifying emergency replacements for Musk should he become unavailable or lose interest in Tesla. "We believe the company's current disclosure regarding the CEO succession plan does not assure investors that the Board is adequately prepared," the shareholders wrote, emphasizing the need for qualified leadership continuity.
Limit directors' external business commitments
Shareholders called for stringent policies restricting Tesla board members' involvement in other companies. They propose limiting executive directors to one additional board position and one executive role at another company, arguing this would ensure adequate time dedication to Tesla's oversight and management.
Appoint truly independent board members
The coalition demanded at least one "truly independent" director with no personal ties to existing board members. They criticized the recent appointment of former Chipotle CFO Jack Hartung, noting his son-in-law works at Tesla and his previous association with Kimbal Musk, Elon's brother who serves on Tesla's board.
The shareholders attributed Tesla's reputation crisis partly to Musk's political activities, including nearly $300 million in pro-Trump donations and endorsement of Germany's far-right AfD party. Tesla has dropped from 8th to 95th place in the Axios Harris Poll of America's most admired brands.
Musk announced earlier this week that his DOGE tenure had ended and pledged to focus more intensively on his businesses, including Tesla, SpaceX, and xAI. However, investors remain skeptical, with Illinois State Treasurer Michael Frerichs questioning whether Musk has learned from his mistakes or will continue prioritizing other ventures over Tesla's urgent needs.
The shareholders blame Tesla's troubles on Musk's divided attention between the company and outside ventures, particularly his recently concluded role at the Department of Government Efficiency (DOGE) under the Trump administration.
Mandate minimum 40-hour work week commitment for Elon Musk
The investors want Tesla's board to require Musk to work at least 40 hours per week at the company as a condition of any new compensation package. This demand comes as Tesla's stock has fallen 12% this year while the Nasdaq declined only 1%. The shareholders noted that Tesla's European sales plunged nearly 50% in April compared to the previous year, and global EV sales declined in the first quarter.
Establish clear CEO succession planning
The letter demands a formal succession plan identifying emergency replacements for Musk should he become unavailable or lose interest in Tesla. "We believe the company's current disclosure regarding the CEO succession plan does not assure investors that the Board is adequately prepared," the shareholders wrote, emphasizing the need for qualified leadership continuity.
Limit directors' external business commitments
Shareholders called for stringent policies restricting Tesla board members' involvement in other companies. They propose limiting executive directors to one additional board position and one executive role at another company, arguing this would ensure adequate time dedication to Tesla's oversight and management.
Appoint truly independent board members
The coalition demanded at least one "truly independent" director with no personal ties to existing board members. They criticized the recent appointment of former Chipotle CFO Jack Hartung, noting his son-in-law works at Tesla and his previous association with Kimbal Musk, Elon's brother who serves on Tesla's board.
The shareholders attributed Tesla's reputation crisis partly to Musk's political activities, including nearly $300 million in pro-Trump donations and endorsement of Germany's far-right AfD party. Tesla has dropped from 8th to 95th place in the Axios Harris Poll of America's most admired brands.
Musk announced earlier this week that his DOGE tenure had ended and pledged to focus more intensively on his businesses, including Tesla, SpaceX, and xAI. However, investors remain skeptical, with Illinois State Treasurer Michael Frerichs questioning whether Musk has learned from his mistakes or will continue prioritizing other ventures over Tesla's urgent needs.
You may also like
BJP MP Praveen Khandelwal Slams AAP's Sanjay Singh For 'One Nation, One Husband' Remark, Defends Operation Sindoor Campaign
Coastguard makes desperate plea as migrants on boats make them too busy for rescues
UEFA to make Champions League rule change next season after Arsenal complaints
'Not Just One Community's Leader': LJP Hints Chirag Paswan May Contest Bihar Assembly Polls From General Seat; Party Pushes For Broader Representation
BJP govt in Assam concerned for power, money, land, syndicate: Gaurav Gogoi
