Calls Grow for CEO to Refocus on Tesla as Sales, Stock, and Reputation Take a Nosedive
A powerful group of Tesla shareholders has just sent a thunderous wake-up call to Elon Musk: Show up, or step aside.
In a fiery letter to Tesla board chair Robyn Denholm, pension fund leaders managing 7.9 million shares slammed Musk’s divided attention and demanded he commit to working at least 40 hours a week at Tesla — or face consequences.
“Tesla Is in Crisis”
The letter pulls no punches:
“Tesla’s stock volatility, plummeting sales, troubling human rights reports, and Musk’s outside antics are pushing the company toward disaster.”
The investors blame Tesla’s downturn not just on market conditions — but on Musk himself, citing his side gigs like running AI startup xAI, leading SpaceX, and spearheading federal job cuts under the Trump administration’s new ‘DOGE’ department.
Tesla’s Numbers Tell a Grim Story:
Stock down 12% in 2025, vs. 1% drop for Nasdaq
European sales down nearly 50% in April
Q1 profits crashed 71%
Even worse, Tesla’s brand reputation has tanked — falling from 8th to 95th in the Axios Harris Poll of U.S. company perception. It now ranks behind six rival automakers.
Political Fallout & Reputation Hits
Musk’s full-throttle dive into politics is fueling investor frustration. He has:
Donated $300 million to support Trump’s 2024 return
Publicly endorsed Germany’s far-right AfD party
Been leading controversial federal agency cuts via DOGE
This, investors say, has alienated customers and hurt the brand globally.
👀 Shareholders Say: Enough.
The group — which includes the SOC Investment Group, the American Federation of Teachers, NYC Comptroller Brad Lander, and Oregon Treasurer Elizabeth Steiner — is calling for:
A clear CEO succession plan
A cap on board members’ outside commitments
At least one fully independent director with no ties to Musk or his inner circle
They even called out Tesla’s latest board appointment — former Chipotle CFO Jack Hartung — for having past business ties to Musk’s brother Kimbal, already a Tesla board member.
Backlash Over Billion-Dollar Bonus
The letter follows a 2024 court ruling that struck down Musk’s massive $56 billion pay package, after it was found Tesla’s board misled shareholders and gave Musk unchecked control.
Now, Musk is pushing for even more: 25% voting power in the company.
Musk Responds (Sort of)
Musk said this week he plans to “focus more” on his companies — Tesla included — but didn’t directly respond to the investors’ demands.
Tesla itself has stayed silent on the letter.
