- As Elon Musk prepares to leave the US governmentTesla investors are appealing to the EV maker to make sure the CEO is refocused on the company and disclose how the board will replace him in an emergency or whether he has lost interest. In a letter sent Wednesday to Robin Denholm, chairman of the Tesla Committee, shareholders requested at least 40 hours a week at the company.
Elon Musk has rarely left the government’s efficiency department to quell Tesla investors’ complaints about the absence of CEOs from EV manufacturers.
Musk said Wednesday that he will leave the government following the end of his “scheduled time” as a special government employee. The move comes amid a new plea to focus on Musk’s role as CEO from Tesla investors and provide more information about how he will ultimately replace Musk when investors move out of Tesla.
“Doge is just one of many external commitments Musk prioritizes over Tesla. TejalPatel is the executive director of the SOC Investment Group. luck. “Just because he’s leaving the Doge doesn’t mean he’s focused on Tesla.”
SOC Investment Group, part of the Union Federation, is a strategic organisation center and submits in collaboration with the Pension Fund group. letter On Wednesday, Tesla board chairman Robin Denholm asked the board to deal with the ongoing “crisis” at the company. The 12 signatories of the letter are long-term investors who own or oversee the investment of approximately 7.9 million Tesla’s 3.2 billion shares.
“Music’s outside efforts seem to have distracted his time and attention from actively managing Tesla’s operations, as would be expected by other chief executives of publicly traded companies,” the letter said. “For many years, CEO Musk’s time spent managing Tesla has been constrained by his multiple private companies and other external efforts.”
Since Musk joined President Donald Trump’s administration, Tesla stocks have fallen more than 14% as vehicle registrations plummet as China’s competition increases and companies’ consumer opinions on masks are sour. His controversial group Doge overturned American bureaucracy and spent the work of 260,000 federal workers. Reuters Calculation.
Illinois State Treasurer Michael Frerichs said he was one of the signers of the letter. luck Musk was dressed in even more political hot water after criticising Trump’s spending bill.
“It’s impressive how he worked with Trump to anger half of America. And now he’s choosing to fight Trump over his ugly bill, and perhaps he’s angering the other half of the country,” Frelics said.
Investor demands
Tesla investors have requested the board include time requirements to assess Musk’s compensation. For example, he requested to work at least 40 hours a week in a role at an EV company. The Tesla Board has gathered a special committee to explore Musk’s new compensation agreement, Financial Times It has been reported Early this month. The CEO was caught up in a long-standing legal battle due to a record $56 billion salary package that was cancelled by a judge.
The signatories also sought a clear succession plan in the company, including identifying “emergency” successors who would intervene for Musk if the company needed it. Shareholders also urged the Tesla Board to set more stringent restrictions due to the involvement of directors and executives in other companies and committees.
“We just want to make sure that individuals can actually dedicate enough time to oversee enough time.
Shareholders urged Tesla to appoint at least one director who is “truly independent” from the company, according to the letter. Earlier this month, Chipotle Chief Strategy Officer Jack Hartong joined the Tesla board, but disclosure noted that his son-in-law is a current Tesla employee.
“It’s a bit surprising to us to appoint another director who is considered not independent, especially given the fact that the board is frequently cited due to its independence and deep connection with the CEO,” Patel said.
Tesla’s board also includes Ila Ehrenplace, chairman of Tesla’s compensation committee and longtime friend of Musk, and Kimbal Mask, a brother of Musk, who has been sitting on the company’s board since 2004. The two insiders recently won $162 million and $31 million, respectively, according to SEC filings.
Tesla didn’t respond luckRequest a comment.
What’s after Doge?
As Musk prepares to leave his role in Doge, investors are asserting that the CEO will come a long way in reconciling the EV maker’s course.
“Essentially, it’s a good first step,” Frerichs said. “But the question is, did he just freed time, or did he learn a lesson from his time? Everyone makes mistakes. The question for me is, you learn from them.”
Musk reaffirmed his desire to lead Tesla at Doha’s Qatar Economic Forum earlier this month, saying in a video call he had planned to become the company’s CEO for five more years. Meanwhile, Musk remains involved in SpaceX, X and Xai’s main major ones. Investors will need to see Musk invest in Tesla over the next six months to a year, Frerichs said.
“Is he still interested in this company or is he more interested in blowing rockets? Is he more interested in going out rants? [X]? ” he said.
Not only will Musk find the time and interest of EV makers, but he will also need to fix what Dan Ives, managing director of Wedbush Securities, previously called “the moment of the brand tornado crisis.” Tesla’s brand is closely related to Musk, and Musk’s involvement in US politics could alienate a large strip of potential consumers.
This story was originally featured on Fortune.com.
