Tesla investors say company faces 'crisis,' demand Musk work 40-week at automaker
According to the letter, investors are urging Tesla's board to require Musk to work a minimum of 40 hours per week at the Austin-based automaker as a condition for any future compensation plan. The letter also calls for the board to establish a clear succession plan for the company's management.
'Tesla's stock price volatility, declining sales, as well as disconcerting reports regarding the company's human rights practices, and a plummeting global reputation are cause for serious concern,' the letter, addressed to the board chair Robyn Denholm, stated. 'Moreover, many issues are linked to Mr. Musk's actions outside of his role as Technoking and Chief Executive Officer at Tesla, including his high-profile role as an architect of the U.S. Department of Government Efficiency (DOGE).'
The letter coincides with Musk's confirmation of his departure from Washington, D.C., marking the end of his time with DOGE and his renewed commitment to his companies.
The Delaware Court of Chancery ordered Tesla to rescind Musk's $56 billion CEO pay package from 2018 early last year. The court determined that Musk had exercised control over the company and that the board's compensation committee had misled shareholders. Additionally, reports indicate that Musk is seeking to increase his stake in Tesla, aiming for approximately 25% voting control of the automaker.
Tesla has faced extensive backlash as a result of Musk's role in the federal government and close ties to President Donald Trump.
Tesla's profit fell 71% in the first three months of 2025, and as of new data, sales in Europe slumped 49% in April compared to a year ago. Tesla's stock is down 12% this year.
The Axios Harris Poll, which is a ranking gauging the reputation of the most visible brands in America, used to see Tesla rankd in the top 10. This year, however, Tesla dropped to 95th overall, behind six other automakers.
The Axios Harris Poll, which evaluates the reputation of the most visible brands in the United States, previously ranked Tesla among the top 10. This year, however, Tesla landed in 95th place overall, falling behind six other automakers.
Tesla showrooms and vehicle owners have been subjected to protests, vandalism and threats of violence. An Austin showroom was targeted in March, and the Austin Police Department's bomb squad later seized potentially incendiary devices after identifying them as a possible threat. One study found that between January and April, 46% of Tesla owners reported that their car has been vandalized, with a third considering getting rid of their vehicle within the next year.
Speculation circulated after Tesla's April earnings call that Tesla's board was looking for a new CEO, which the board chair later denied.
"Earlier today, there was a media report erroneously claiming that the Tesla Board had contacted recruitment firms to initiate a CEO search at the company. This is absolutely false (and this was communicated to the media before the report was published). The CEO of Tesla is Elon Musk and the Board is highly confident in his ability to continue executing on the exciting growth plan ahead," Denholm said in a statement.
The investors who signed the letter own about 7.9 million shares in the company combined. According to the letter, the Tesla board is "unwilling to act in the best interest of all Tesla shareholders" by not requiring Musk's full attention on the company.
The investors' letter asked Tesla to add a new independent director who does not have personal ties with other board members. Earlier this month, Tesla said former Chipotle CFO Jack Hartung would join the company's board. Hartung previously worked alongside Musk's brother and Tesla board member Kimbal Musk, who was also a board member at Chipotle.
Tesla to add at least one new independent director with no personal ties to other board members. Tesla earlier this month said former Chipotle CFO Jack Hartung will join the company's board. Hartung previously worked with Musk's brother and Tesla board member Kimbal Musk, who was a board member at the Mexican food chain.
Musk confirmed Wednesday that he'd rededicate more time to his companies, including Tesla, as well as SpaceX and xAI.
This article originally appeared on Austin American-Statesman: Musk must work 40-hour week, Tesla investors say as company faces 'crisis'
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