Investors are reportedly calling on Tesla CEO Elon Musk to refocus his effort on turning around the troubled electric-car brand.
Tesla investors are reportedly lobbying the brand’s Chief Executive Officer, Elon Musk, to commit more time to turning the car maker’s fortunes around amid tumbling sales and crashing share price.
Musk, who has been steering the Tesla ship since 2008 and shepherded the brand through its meteoric rise as the most valued car company in the world, surpassing Toyota and Volkswagen on the back of its pioneering electric car models, has recently been stretched thin with other commitments.
Also taking leadership roles at X (formerly Twitter), Neuralink, Starlink, and SpaceX, as well playing an active role in the recent US Presidential election and joining the newly-formed Department of Government Efficiency under Donald Trump, a group of Tesla investors have reportedly penned a letter to Tesla chair (and Australian) Robyn Denholm.
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“Mr Musk’s outside endeavours appear to have diverted his time and attention from actively managing Tesla’s operations, as any other chief executive officer of a publicly traded company would be expected to do,” the letter said, according to CNN.
“The current crisis at Tesla puts into sharp focus the long-term problems at the company stemming from the CEO’s absence, which 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 on Tesla.
“The Board must ensure that Tesla is not treated as just one among many competing obligations.
“Tesla deserves a CEO whose time and attention align with the scale of the responsibilities at hand.”
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Tesla has not officially responded at the time of writing, and Musk will step away from his US government role this week and promised to refocus on his business endeavours.
Tesla’s share price has fallen from around $US480 ($AU747) in mid-December to around $US355 ($AU553) now, dropping as low as about $US220 ($AU343) in the last six months.
The first quarter of 2025 has been difficult for the brand, reporting its operational income has fallen 66 per cent compared to the same period in 2024, while its global sales have also dropped 13 per cent year-on-year.
As a result, total automotive revenue to the end of March this year was down 20 per cent to $US14 billion ($AU21.8 billion).
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The group of shareholders who reportedly penned the letter hold around 7.9 million Tesla shares, representing about 0.2 per cent of publicly traded stock, are also asking for clarity in naming Musk’s successor and more changes in leadership.
“We believe the company’s current disclosure regarding the CEO succession plan does not assure investors that the Board is adequately prepared, if necessary, to bring on a new individual with the appropriate skillset to execute Tesla’s business plans,” the letter said.
“We believe the ongoing issues related to the company’s performance and the reputational damage to Tesla’s once strong brand warrant further board refreshment by rotating at least one director off and appointing a new, truly independent director who can provide a fresh perspective.”
In Australia, Tesla lost its number one electric vehicle placement to the BYD Sealion 7 in April, however the Model Y is currently changing over to an updated model.
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