Investors in Elon Musk‘s car company, Tesla, have called on Musk to work at least 40 hours a week at the company.
In a letter to Tesla’s board chair Robyn Denholm, a group of pension fund leaders who own about 7.9 million shares in the company called on the Tesla board to mandate Musk to show more face. They cited concerns about the company’s share value and reputation, and made a number of other demands on the company.
Why It Matters
Musk, the world’s richest man, stepped into the political sphere through his support for Trump in the 2024 presidential election. When Trump won, he appointed Musk to head the unofficial Department of Government Efficiency (DOGE).
This has had an impact on his businesses. According to an Axios Harris Poll of public perceptions of the 100 most visible U.S. companies, Tesla is the 95th most popular American brand. It previously ranked eighth.
Meanwhile, sales of the vehicles made by the U.S. company dropped 49 percent in April compared to the same time last year and its stock price has fluctuated.
What To Know
The letter blamed Musk’s absence on “stock price volatility” and “declining sales” as well as human right’s concerns “and a plummeting global reputation are cause for serious concern.”
They said that “many issues are linked to” Musk taking on roles outside the company, like his role in DOGE.
The investors also called for a succession plan for management of the business and a policy to limit board member’s outside interests. They also asked Tesla to add one new independent director to the company.
The pro-labor SOC Investment Group, American Federation of Teachers, New York City Comptroller Brad Lander and Oregon State Treasurer Elizabeth Steiner were among those who signed the letter.
What People Are Saying
The letter said: “It has become clear to us that Tesla needs
certain corporate governance reforms to address deficiencies in the Board’s oversight of company leadership.”
It added: “Mr. Musk’s outside endeavors appear to have diverted his time and attention from actively managing Tesla’s operations, as any other chief executive officer of a publicly traded company would be expected to do
What Happens Next
Tesla has not responded publicly to the letter.
Meanwhile, Musk has indicated he may soon pay more attention to his businesses like Tesla. In May, he said he plans to cut back on political spending, telling a conference he had “done enough.” He has also recently taken a step away from his political role to focus on his companies.
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