CNN
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A group of Tesla investors is urging Elon Musk to commit at least 40 hours a week to running the electric vehicle company, arguing his undivided attention is needed to repair Tesla’s faltering sales and stock price volatility.
“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,” said a letter obtained by CNN Wednesday from the group of shareholders, who collectivley hold approximately 7.9 million shares of Tesla. Tesla currently has over 3 billion shares outstanding, so their stake makes up around just 0.2% of the company’s publicly traded stock.
Tesla did not immediately respond to a request for comment.
“The current crisis at Tesla puts into sharp focus the long-term problems at the company stemming from the CEO’s absence, which is amplified by a Board that appears largely uninterested and unwilling to act in the best interest of all Tesla shareholders by demanding Mr. Musk’s full-time attention on Tesla,” the letter continued.
Ever since Musk took the role of Tesla CEO in 2008, he has served as the very public face of the company. When Tesla faced troubles in the past, Musk told the press that he often slept on the company’s factory floor and worked at all hours of the night to ensure the company’s success.
But these days, Musk has a very full plate. Musk runs or plays a leadership role in several other companies, including SpaceX, X (formerly Twitter), xAI and his brain chip company, Neuralink. And ever since President Donald Trump’s inauguration in January, Musk has been part of the Department of Government Efficiency (also known as DOGE), which was tasked by Trump to modernize and find cost savings in the federal government.
In the meantime, Tesla has struggled. Its sales are dwindling, profits are falling and the company’s stock (TSLA) has experienced wild swings this year. In addition, as Musk’s political profile has grown, the company’s brand has taken a hit.
Though Musk recently signaled that he would retreat from politics and would return to “spending 24/7 at work,” the letter suggested that more concrete reforms are needed to reverse Tesla’s troubles.
The letter to Tesla board chair Robyn Denholm, which was signed by a coalition of institutional investors, including pension funds, unions and both the Illinois and Oregon State Treasurers, called for the board to address Musk’s divided focus by tying his pay to a full-time commitment of at least 40 hours per week at Tesla.
“The board must ensure that Tesla is not treated as just one among many competing obligations,” the letter read. “Tesla deserves a CEO whose time and attention align with the scale of the responsibilities at hand.”
The letter also urged the board to disclose a clear CEO succession plan.
“We believe the company’s current disclosure regarding the CEO succession plan does not assure investors that the Board is adequately prepared, if necessary, to bring on a new individual with the appropriate skillset to execute Tesla’s business plans,” the letter said.
The letter also urged Denholm to add a truly independent board member to Tesla’s board – one without personal ties to Musk or other current Tesla board members.
“We believe the ongoing issues related to the company’s performance and the reputational damage to Tesla’s once strong brand warrant further board refreshment by rotating at least one director off and appointing a new, truly independent director who can provide a fresh perspective,” the letter read.
