A coalition of pension fund investors, holding approximately 7.9 million Tesla shares, has urged the company’s board chair, Robyn Denholm, to address a “crisis” at Tesla by ensuring CEO Elon Musk dedicates at least 40 hours per week to the electric vehicle company.
In a letter dated May 28, 2025, the investors—representing groups like the New York City Comptroller, the American Federation of Teachers, Oregon State Treasurer, and SOC Investment Group—highlighted Tesla’s challenges, including a 12% stock price drop in 2025 (compared to a 1% Nasdaq decline), a nearly 50% plunge in European sales in April, declining brand reputation, and concerns over human rights practices.
They attributed these issues partly to Musk’s external commitments, including his role in the Trump administration’s Department of Government Efficiency (DOGE) and his political activities, such as endorsing Germany’s far-right AfD party and spending nearly $300 million to support Donald Trump’s re-election.
The investors criticized the Tesla board for failing to prioritize shareholders’ interests by not requiring Musk’s full-time focus.
They proposed that any new compensation package for Musk, who is seeking 25% voting control of Tesla after a Delaware court voided his $56 billion 2018 package, be tied to a 40-hour workweek commitment. Additionally, they called for a clear succession plan, limits on directors’ external board roles, and the appointment of a new independent director without personal ties to existing board members.
This follows Tesla’s recent addition of Jack Hartung, former Chipotle CFO, who previously worked with Musk’s brother, Tesla board member Kimbal Musk.
Tesla’s brand ranking has fallen from eighth to 95th in the Axios Harris Poll, trailing six other automakers, largely due to Musk’s controversial rhetoric and political involvement. Musk recently stated he intends to refocus on Tesla, xAI, and SpaceX. The company did not respond to the investors’ letter.
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