A coalition of Tesla shareholders has formally requested that the company’s board of directors ensure CEO Elon Musk devotes more consistent time to the electric vehicle manufacturer, the Washington Post reports.
In a letter addressed to board chair Robyn Denholm, the group asked that Musk commit at least 40 hours per week to Tesla, amid concerns that his involvement in federal politics and other ventures has distracted from the company’s performance.
The letter, sent Wednesday, was signed by the SOC Investment Group—affiliated with a coalition of labor unions—and a group of small investors collectively holding approximately 7.9 million Tesla shares. While this represents a small portion of Tesla’s 3.2 billion outstanding shares, the group raised concerns that reflect broader investor unease.
Tesla’s recent earnings report showed a 71% decline in profits and a 13% drop in sales compared to the same quarter in 2024. Analysts have partly attributed this decline to Musk’s role in Washington, particularly his involvement with the US DOGE Service, where he has reportedly influenced government restructuring efforts. Over the past few months, Tesla’s stock has fallen by around 24% from its December peak, although it has shown signs of recovery following Musk’s recent announcement that he would scale back his political involvement.
“The current crisis at Tesla puts into sharp focus the long-term problems at the company stemming from the CEO’s absence,” the shareholders’ letter stated. “This is amplified by 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.”
Beyond Musk’s time commitment, the shareholders also called for broader governance reforms. These include creating a succession plan for company leadership, adopting a policy to limit outside board commitments, and appointing at least one new board member without personal ties to existing directors.
Tesla’s board has previously faced criticism over its close ties to Musk. In a December 2024 court decision invalidating Musk’s $56 billion compensation package from 2018, a Delaware judge cited concerns about the CEO’s influence over board members, some of whom are family or close associates. That ruling led Musk to move Tesla’s legal incorporation from Delaware to Texas.
While there have been recent reports suggesting that Tesla’s board is seeking a new CEO, Denholm publicly denied the claims, writing on social media that the board remains confident in Musk’s leadership.
Tesla, Musk, and Denholm have not responded to the latest letter or to media inquiries. Several of the shareholders involved in Wednesday’s letter also opposed Musk’s 2018 compensation package, expressing concern at the time about his multiple business commitments and the board’s reluctance to impose clearer boundaries.
