A group of main shareholders of Tesla is calling on CEO Elon Musk to recognize his attention to the electric vehicle company, citing declining sales, reputable damage and the growing list of CEO of external enterprises, including a controlled result in Trump’s administration.
In a letter sent Wednesday to the chairman of Tesla Robyn Denholm, investors asked the board to seek Musk to spend a minimum of 40 hours a week in the company and to adopt new governance policies that would limit external directors’ commitments.
They also called an official CEO success plan and at least a new independent board member without any personal for Musk or his allies.
“The volatility of Tesla’s stock price, sales decline, as well as detachment reports on the company’s human rights practices, and a major global reputation is the cause of serious concern,” the letter said. The content of the letter was reported by CNBC.
“Moreover, many issues are related to
Musk’s time at the Federal Agency he helped lead as part of the second term of the Trump administration ended this week after his 130-day limit expired as a special government employee.
“The @doge mission will only be strengthened over time as it becomes a way of life throughout the government,” Musk wrote on social media on Wednesday, adding in a special post: “Thanks to President Trump for the opportunity to reduce the costs of vain.”
But for some Tesla investors, his government’s work is emblematic of a deeper problem: an increasingly confused CEO from the company’s essential mission at a time when facing head mounts.
Tesla sales have fallen, with European Hand in April nearly 50% of the same month last year. The ratings of the first quarter of the global also fell year by year, and the company’s shares have dropped 12% to 2024 sharp by subform Nasdaq, which has decreased about 1% for the same period.
The company’s public image has also received a hit.
After ranking among the 10 most admired American brands, Tesla has fallen to 95 in the latest Axios Harris rankings, following six other vehicle manufacturers.
Investors attribute to Musk’s political activity, including a donation of nearly $ 300 million for pro-trump efforts and controversial approval by Germany’s far-right party.
The letter was signed by shareholders controlling a combined 7.9 million tesla, including the social investment group, the American Teacher Federation, the Oregon Elizabeth Steiner’s Treasury and the New York Brad Lander city controller.
They criticized the Tesla board as “willing to act in the best interest of all Tesla shareholders” and argued that Musk’s “full -time attention” is essential to the return of the company.
“Tesla is facing a crisis,” the letter says openly.
Paper time coincides with constant voltages between Musk and Tesla board for executive compensation.
In January, a Delaware judge hit the Musk salary package for 2018 – once worth $ 56 billion – deciding that the board cheated investors and that Musk effectively controlled the company.
Musk has since asked a new deal that would give him 25% voting control.
This month, Tesla announced that Jack Hartung, the former -cfo of Chipotle, would join her board.
But the investors noted that Hartung previously served with the brother of Musk Kimbal Musk, a Tesla director, raising concerns about board independence.
Musk, for his part, said this week that he plans to “focus more” on his businesses, which also include Maker Spacex Rocket and the onset of artificial intelligence XAI.
The post has requested comment from Musk and Tesla.
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