Tesla Investors Urge Musk to Commit to 40-Hour Workweek Amid Crisis: Demand for Leadership and Stability Rises
In a pointed letter addressed to Tesla’s board chair, Robyn Denholm, a coalition of pension fund leaders advocating for corporate governance has called for Elon Musk to devote more time to the electric vehicle giant. The investors highlighted Tesla’s ongoing challenges, including volatile stock prices, declining sales, and growing concerns over the company’s human rights practices and global reputation. They attribute many of these issues to Musk’s engagements outside Tesla, notably his high-profile role as an architect of the U.S. Department of Government Efficiency (DOGE).
The group is pushing the Tesla board to mandate a minimum of 40 hours per week for Musk at the company to qualify for any new compensation arrangement. They also emphasize the need for a robust succession plan for Tesla’s management and policies restricting board members from engaging in outside commitments. Recently, a Delaware court invalidated Musk’s 2018 CEO pay package, initially valued at $56 billion, ruling that Musk effectively controlled the company and that shareholders were misled during the approval process.
As Musk aims for greater control over Tesla, seeking 25% in voting shares, the outlook for the company remains troubling. Reports indicate that Tesla’s brand value has significantly waned, influenced by Musk’s controversial rhetoric and political undertakings. For instance, he has invested nearly $300 million in efforts related to Donald Trump’s political comeback and has endorsed Germany’s far-right Alternative for Germany (AfD) party amid its recent parliamentary elections. In terms of reputation, Tesla has plunged from being the eighth most popular American brand as per the Axios Harris Poll to a dismal 95th, trailing six other automakers.
Financially, Tesla’s stock has dropped by 12% this year, compared to a mere 1% dip in the Nasdaq. Recent data revealed that Tesla’s sales in Europe plummeted nearly 50% in April compared to the same period last year, extending the company’s troubling trends from the first quarter. The investors, collectively holding about 7.9 million shares, have criticized Tesla’s board for not acting in the best interests of shareholders-specifically, by failing to enforce Musk’s full-time attention on the business.
Amid these challenges, Musk has indicated intentions to focus more on his array of businesses, which include xAI and SpaceX in addition to Tesla. Among the signatories of the letter are organizations like the pro-labor SOC Investment Group and the American Federation of Teachers, as well as key figures such as New York City Comptroller Brad Lander and Oregon State Treasurer Elizabeth Steiner.
In a move to address governance concerns, Tesla recently announced the addition of former Chipotle CFO Jack Hartung to its board. However, Hartung’s prior connection with Musk’s brother, Kimbal Musk, raises questions about the independence of board members. As this situation develops, Tesla has not issued a formal response to the investors’ letter, leaving open questions about the company’s direction and commitment to shareholder interests.
The unfolding drama at Tesla not only touches on corporate governance but also reflects wider issues surrounding a company that has historically played a pivotal role in shaping the electric vehicle market. Investors and analysts alike will be watching closely to see how Musk navigates these pressures and what steps Tesla will take to reclaim its position both in the market and within public perception.
Original Source: https://www.cnbc.com/2025/05/28/tesla-investors-demand-musk-work-40-hour-week-at-ev-maker-amid-crisis.html
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Publish Date: 2025-05-29 03:27:00
