Tesla Investors Urge Board to Require Musk to Work 40 Hours a Week

Musk's Absence and Board Inaction Fuel Tesla's Crisis
At Least One Additional Independent Director Needed on the Board

Pension fund managers who are long-term investors in Tesla have argued that the Tesla board should require CEO Elon Musk to work at least 40 hours per week.

According to CNBC on May 28 (local time), the investors sent a letter to Tesla board chair Robyn Denholm, pointing out that CEO Musk needs to devote more time to Tesla. The letter was co-signed by investors holding a total of 7.9 million shares, including the New York City Comptroller, the Oregon State Treasurer, the American Federation of Teachers (AFT), and the SOC Investment Group.

The investors identified CEO Musk's absence and a board that is "reluctant to act in the best interests of all shareholders" as the causes of the crisis facing Tesla.

In the letter, the investors stated, "Tesla's stock price volatility, declining sales, troubling reports on human rights, and the plummeting global brand reputation are all serious concerns." They further noted that many of these issues are related to activities conducted outside the company by Musk, who serves as Tesla's 'Technoking' and CEO. This includes Musk's leading role at the Department of Government Efficiency (DOGE).

The investors argued that before discussing any new compensation plan for CEO Musk, the Tesla board should require him to work 40 hours per week at Tesla. This is seen as a criticism of Musk's focus on external activities rather than on his primary management responsibilities. Previously, the Financial Times (FT) reported on May 14 that the Tesla board was seeking new compensation plans for Musk, including the possible restoration of a massive compensation package that was previously blocked by a court. They also called for a management succession plan and for the entire Tesla board to be prohibited from holding outside board positions at both public and private companies.

Tesla's brand value and reputation have been on the decline since 2024. In the past, Tesla ranked 8th among the most popular brands in the United States, but in a recent Axios Harris survey of the top 100 U.S. companies by image, it plummeted to 95th place. There were six automakers ranked ahead of Tesla. Tesla's first-quarter results also fell short of market expectations, dropping 13% compared to the same period last year. This year, while the Nasdaq index slipped 1% due to President Trump's tariff war, Tesla's stock price fell by 12%.

Investors and foreign media attribute this mainly to CEO Musk's provocative remarks and political activities. Musk reportedly spent about $300 million to support the re-election of U.S. President Donald Trump, and he faced public backlash for openly supporting the far-right Alternative for Germany (AfD) party ahead of this year's German general elections. After the launch of the Trump administration, Musk led the Department of Government Efficiency, spearheading significant cuts to federal agency staff and spending, which also drew criticism.

The investors also criticized the board for its passive stance in these developments, arguing that the board allowed the situation in which Musk is not fully committed to Tesla to continue. They continued their criticism regarding the board's composition. Earlier this month, former Chipotle CFO Jack Hartung joined the Tesla board; he had previously served with Kimbal Musk, Elon Musk's brother and a Tesla director, on the Chipotle board. The investors demanded that at least one additional independent director with no personal ties to current board members be appointed.

This content was produced with the assistance of AI translation services.