A group of major Tesla shareholders is calling for CEO Elon Musk to dedicate 40 hours a week to the company, citing declining sales, reputational damage, and concerns over his outside ventures.
A letter sent to Tesla board chair Robyn Denholm by investors controlling 7.9 million shares demands new governance policies that would limit directors’ external commitments and require a formal CEO succession plan. The shareholders also want at least one independent board member with no ties to Musk or his allies.
Tesla’s struggles are evident in its declining sales, including a nearly 50% drop in European deliveries in April compared to the same period last year. The company’s stock has fallen 12% in 2024, underperforming the Nasdaq. Tesla’s public image has also taken a hit, plummeting from among the top 10 most admired US brands to 95th in the Axios Harris Poll.
Investors attribute this decline partly to Musk’s political activity and controversies surrounding his involvement with the Trump administration and his role as a special government employee until this week. The shareholders’ concerns are reflected in their criticism of Tesla’s board, which they say has failed to act in the best interest of all shareholders.
The timing of the letter coincides with ongoing tensions between Musk and Tesla’s board over executive compensation. A Delaware judge previously struck down Musk’s 2018 pay package, ruling that the board misled investors. Musk now seeks a new arrangement that would grant him 25% voting control.
Source: https://nypost.com/2025/05/29/business/tesla-shareholders-demand-elon-musk-work-40-hours-per-week