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Washington Post
28-05-2025
- Business
- Washington Post
Tesla investors ask board to make Musk work full-time
A group of activist Tesla shareholders sent a letter to board chair Robyn Denholm Wednesday calling for guarantees that CEO Elon Musk devote at least 40 hours a week to the electric vehicle maker after spending much of the past year focused on federal politics. The letter was signed by SOC Investment Group, which is sponsored by a coalition of labor unions, and other small investors that together own about 7.9 million Tesla shares — a minuscule fraction of the company's 3.22 billion outstanding shares. It comes amid investor and employee frustration over the impact Musk's role with the Trump administration has had on the company's sales and reputation. Tesla's most recent earnings call last month revealed a 71 percent drop in profits and a 13 percent slide in sales compared to the same time in 2024. Experts and analysts largely attribute that hit to Musk's work with the U.S. DOGE Service, where he has inspired sweeping job and budget cuts in the federal government. The company's stock has fallen about 24 percent from a high in December 2024, though it has recovered in recent days as the billionaire says he is retreating from Washington politics to refocus on his companies. '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 Musk's full-time attention on Tesla," the letter said. '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,' Musk, Denholm and Tesla did not respond to requests for comment. The letter also calls on Denholm to create a clear, long- and short-term succession plan for management and to outline a policy that specifically limits outside board commitments at other public and private companies. The shareholders also urge the board to appoint 'at least one new truly independent director with no personal ties to other Board members.' Tesla's board has been criticized in the past for its deference to Musk. In a December 2024 ruling against restoring a $56 billion pay package that the board granted Musk in 2018, a Delaware judge criticized Musk's close ties to members of the board, which include his brother. That case, brought in 2018 by a shareholder with only nine Tesla shares, prompted Musk to reincorporate Tesla in Texas. Last month, the Wall Street Journal reported earlier this month that Tesla's board was searching for a new CEO. Denholm called the report 'absolutely false' in a post on X, writing, 'the Board is highly confident in [Musk's] ability to continue executing on the exciting growth plan ahead.' Several of the signatories in Wednesday's letter were also part of a group last year that opposed the ratification of Musk's 2018 pay package, saying the CEO was too distracted by his several other companies. At the time, the group of investors said that 'the Board continues to allow Musk to be overcommitted, not demanding that he devote his attention to his role as CEO and 'Technoking' of Tesla.'
Wall Street Journal
23-05-2025
- Business
- Wall Street Journal
Eurozone Wages Growth Slowed Sharply Ahead Of Tariff Blow
Wages in the eurozone rose at a much slower pace during the three months through March even as the unemployment rate remained at a record low, opening the way for further cuts to borrowing costs by the European Central Bank. The ECB on Friday said wages set through negotiations between employers and labor unions or similar bodies were 2.38% higher in the first quarter of 2025 than a year earlier, a slowdown from the 4.12% increase recorded in the three months through December. That slowdown was sharper than expected.
Yahoo
23-05-2025
- Business
- Yahoo
Japan CPI grows more than expected in April as wage hikes boost spending
Japanese consumer price index inflation grew more than expected in April after a bumper springtime wage hike helped boost private spending and offset headwinds from higher U.S. trade tariffs. National core CPI, which excludes volatile fresh food prices, grew 3.5% year-on-year in April against expectations of 3.4%, government data showed on Friday. The print also increased from the 3.2% seen in the prior month and was at its highest level since early-2023. A core CPI reading that excludes both fresh food and energy prices, and is closely watched as a gauge of underlying inflation by the Bank of Japan, edged up to 3% from 2.9% in the prior month, pulling further above the BOJ's 2% annual target. National headline CPI remained steady at 3.6% in April. Friday's strong CPI reading was driven chiefly by strong private spending, after Japanese labor unions won another round of bumper springtime wage hikes earlier this year. The print also ties into the BOJ's expectations that higher wages will boost prices, which could in turn spur the central bank into hiking interest rates further in the coming months. While the BOJ had tempered its rate hike outlook due to uncertainty over increased U.S. trade tariffs, a sustained uptick in inflation could push the bank into raising rates further. The BOJ ended nearly a decade of ultra-loose monetary policy last year, and had raised interest rates twice. The central bank had also hiked rates by 25 basis points in early-2025, but has since struck a more cautious stance on further monetary tightening. Related articles Japan CPI grows more than expected in April as wage hikes boost spending Japan manufacturing PMI shrinks for 11th straight month in May on trade headwinds Canadian millionaires eyeing exit amid economic worries, survey shows
NHK
17-05-2025
- Automotive
- NHK
Nissan's plants reduction plan may include 2 in Japan, sources say
Nissan Motor plans to reduce its global production facilities as part of a drastic plan to restructure its business. Sources say this may include two plants in Japan. The struggling Japanese automaker plans to reduce its global group workforce by 20,000 jobs, and consolidate 17 of its Nissan production facilities down to 10 as by fiscal 2027. Sources say the reduction plan includes the Oppama plant, and the Shonan plant of Nissan's subsidiary Nissan Shatai, both in Kanagawa Prefecture, south of Tokyo. The Oppama factory has a yearly capacity of 240,000 vehicles, while the Shonan plant's annual capacity is 150,000 units. Production rates at the two facilities have been low due to Nissan's sluggish sales. Nissan earlier announced it will pull out of Argentina and India. The company is also considering restructuring its production bases, including those in Mexico. In the cities that host the Oppama and Shonan plants, municipalities and residents are concerned about potential impacts on employment and local economies. Nissan intends to give thorough consideration to the restructuring plan as it needs to coordinate with labor unions and other stakeholders. Nissan commented on media reports of possible closures of some of its plants by saying they are based on speculation and are not based on information it has provided.
