A group of main shareholders from Tesla asks the CEO Elon Musk to recommend their attention to the electric vehicle company, citing decline sales, reputational damage and the growing list of the CEO of external companies, including a stage now concluded in the Trump administration.
In a letter sent on Wednesday to the President of the Tesla Council, Robyn Denholm, the investors urged the Council to demand that Musk spend a minimum of 40 hours a week in the company and to adopt new government policies that limit the external commitments of the directors.
They also requested a formal succession plan for the CEO and at least a new member of the independent council without personal links with Musk or their allies.
“The volatility of the price of Tesla actions, the decrease in sales, as well as the bewildering reports on the company’s human rights practices, and a global reputation they cry are reasons of serious concern,” says the letter. The contents of the letter was informed by CNBC.
“In addition, many issues are related to Mr. Musk’s actions out of his role as Technoking and CEO of Tesla, including his great role as an architect of the United States Government Efficiency Department (DOGE).”
Musk’s time in Dooge, a federal agency that helped lead as part of the Trump administration’s second term, officially ended this week, as its 130 -day limit as a special government employee expired.
“The mission of @doge will only be strengthened over time, as it becomes a way of life throughout the government,” Musk wrote on social media Wednesday, adding a separate post: “Thanks to President Trump for the opportunity to reduce wasted spending.”
But for some investors in Tesla, his government work is emblematic of a deeper problem: an increasingly distracted CEO of the company’s main mission at a time when he faces the heading mountain.
Tesla sales have fallen, and European deliveries in April dropped almost 50% compared to the same month last year. The world’s world sales of the first quarter also decreased year -on -year and the company’s shares have fallen by 12% by 2024, with a sharp performance of Nasdaq, which dropped approximately 1% in the same period.
The company’s public image has also been successful.
Once located between the 10 best -admired North -American brands, Tesla has dropped to 95th place in the last classification of the Axios Harris survey, which exceeded six other automobile manufacturers.
Investors are part of Musk’s political activity in part, including a $ 300 million donation to Pro-TRTRUM efforts and a controversial AFD AFD party endorsement.
The letter was signed by shareholders who controlled 7.9 million Tesla actions, including the SOC Investment Group, the American Federation of Teachers, the State Treasurer of Oregon Elizabeth Steiner and the New York Brad Lander controller.
They criticized the Tesla Council as “not ready to act in the best interest of all Tesla shareholders”, and argued that Musk’s “full -time” care is essential for turning the company.
“Tesla faces a crisis,” says the letter blatantly.
The letter calendar coincides with the continuous tensions between the Musk and Tesla Council on executive compensation.
In January, a Delaware judge noted the 2018 Musk payment package, once evaluated at $ 56 million, ruled that the council cheated on investors and that Musk effectively controlled the company.
Since then, Musk has demanded a new agreement that would grant 25% of voting control.
This month, Tesla announced that Jack Hartung, the old Chipotle CFO, would join his advice.
But investors said that Hartung previously served with Musk’s brother, Kimbal Musk, director of Tesla, with concerns about the independence of the Council.
Musk, on the other hand, said this week that he plans to “focus” on his business, which also include Rocket Maker Space and the beginning of artificial lamb intelligence.
The publication has sought comments from Musk and Tesla.
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Image Source : nypost.com