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Show up for work and do your job — that’s what 12 large pension funds, representing $950 billion in assets, told Tesla (TSLA-3.33%) CEO Elon Musk in an open letter, where they demanded he work 40 hours a week at the EV giant.
The investor letter cited “Tesla’s stock price volatility, declining sales, as well as disconcerting reports regarding the company’s human rights practices, and a plummeting global reputation” as causes for serious concern.
It blames Musk’s competing interests for Tesla’s long-term problems, while also pointing fingers at a board “that appears largely uninterested and unwilling to act in the best interest of all Tesla shareholders by demanding Mr. Musk’s full-time attention on Tesla.” They call for “clear time commitments” to be baked into future compensation, starting at a minimum of 40 hours a week.
Tesla stock is down more than 24% since its December 2024 peak, before Musk began playing a high-profile, controversial role in President Donald Trump’s administration and the company started fending off rumors that it was looking to replace its CEO. Musk has since admitted that his political ties have negatively affected the EV company and announced in early May that he would be spending less time on politics. At the Qatar Economic Forum on May 20, he said he intended to lead Tesla for at least five more years, “unless I die.”
In addition to his role at Tesla, Musk is the CEO of SpaceX and the CTO of X Corp., as well as being president of the Musk Foundation, which he runs with his brother, Kimbal. On top of all that, he moved into the White House during the first few months of the second Trump administration, where he provided daily advice as the head of the Department of Government Efficiency, or DOGE — named after a memecoin often referenced by Musk.
He also spends an inordinate and visible of time posting on X, the company formerly known as Twitter, which he purchased in 2022.
In addition to demanding Musk do his job, the investor letter also called for a succession plan, including one for an emergency, and limits on the number of other boards that Tesla directors could serve on.
The investors also directly scolded the board itself, writing, “Concerns regarding Tesla’s poor corporate governance have become increasingly pronounced, most recently with Tesla’s announced bylaw amendment that curtails its shareholders’ ability to hold directors accountable for breaches of fiduciary duty.”
Despite the size of the investors who signed the letter — including the American Federation of Teachers, the state treasurers of Oregon and Illinois, and New York City’s state comptroller — they only own 7.9 million of Tesla shares, or 0.25% of the company.