A group of main shareholders of Tesla is calling CEO Elon Musk to recommend his attention to the company of electric vehicles, citing falling sales, reputation damage and the growing list of CEO of external enterprises-including a controlled result in Trump’s administration.
In a letter sent to Tesla Robyn Denholm on Wednesday, investors asked the board to seek Musk to spend a minimum of 40 hours a week in the company and to adopt new governance policies that would limit foreign directors’ commitments.
They also demanded an official CEO success plan and at least a new independent board member with no personal connection with Musk or his allies.
“The volatility of Tesla’s stock price, sales decline, as well as worrying reports on the company’s human rights practices, and a fallen global reputation is the cause of serious concern,” the letter said. The content of the letter was reported by CNBC.
“Moreover, many issues are related to Mr. Musk’s actions outside his role as technology and chief executive in Tesla, including his high profile role as the architect of the US Government Efficiency Department.”
Musk’s time in Dage-a federal agency he helped lead as part of the second term of the Trump administration-endlessly ended this week after his 130-day border as a special government employee expired.
“The @doge mission will only be strengthened over time as it becomes a way of life throughout the government,” Musk wrote on social media on Wednesday, adding in a special post: “Thanks to President Trump for the opportunity to reduce the costs of vain.”
But for some Tesla investors, his government’s work is emblematic of a deeper problem: an increasingly confused CEO from the company’s essential mission at a time when facing head mounts.
Tesla sales have fallen, with European deliveries in April nearly 50% of the same month last year. The global sales of the first trimester also fell year by year, and the company’s shares have dropped 12% to 2024-strongly underlined Nasdaq, which has decreased about 1% for the same period.
The company’s public image has also received a hit.
After ranking among the 10 most admired American brands, Tesla has fallen to 95 in the latest Axios Harris rankings, following six other vehicle manufacturers.
Investors attribute to Musk’s political activity, including a donation of nearly $ 300 million for pro-trump efforts and controversial approval by Germany’s far-right party.
The letter was signed by shareholders checking a combined 7.9 million tesla, including the SOC investment group, the American Teacher Federation, the Oregon Elizabeth Steiner’s Treasury and the New York Brad Lander city controller.
They criticized the Tesla board as “willing to act in the best interest of all Tesla shareholders” and argued that Musk’s “full -time attention” is essential to the return of the company.
“Tesla is facing a crisis,” the letter says openly.
Paper time coincides with constant voltages between Musk and Tesla board for executive compensation.
In January, a Delaware judge hit the Musk salary package for 2018 – once worth $ 56 billion – deciding that the board cheated investors and that Musk effectively controlled the company.
Musk has since then requested a new deal that would give 25% voting control.
This month, Tesla announced that Jack Hartung, the former -cfo of Chipotle, would join her board.
But the investors noted that Hartung previously served with the brother of Musk Kimbal Musk, a Tesla director, raising concerns about board independence.
Musk, for his part, said this week that he plans to “focus more” on his businesses, which also include Maker Spacex Rocket and the onset of artificial intelligence XAI.
The post has requested comment from Musk and Tesla.
#Tesla #shareholders #require #CEO #Elon #Musk #Work #hours #week #middle #crisis
Image Source : nypost.com