Tesla shareholders want Elon Musk to put at least 40 hours a week into the car maker, with investors complaining the CEO’s attention is too focused on his private space race. The call is being made against the backdrop of falling sales and what some see as a loss of luster for Tesla’s global image.
Here’s what to know about the situation:
Investor Concerns:
Large Tesla shareholders think Musk’s attention is elsewhere including at SpaceX, at projects like xAI, and in political activities.
They have pointed to weakening Tesla sales — especially in Europe — and to a decline in the company’s stock price as evidence of this fact.
There is also the sense that Musk’s politics are sullying the Tesla brand.
Investor Demands:
A group of investors have written a letter to Tesla’s board, asking for more stringent terms to be placed on Musk’s participation.
They are calling for any future pay package for Musk to include a full-time commitment to Tesla.
They also want clear rules to cap how much time directors may spend on outside businesses, and an independent member of the board.
Impact and Implications:
The dynamic illustrates a balance Musk must strike between his grandiose vision and the mundane desires of shareholders.
The investors’ requests could result in a major shake-up of Tesla’s governance and leadership.
It also throws into doubt the utility of over-busy CEO’s who sit on many big company boards.
Also at stake in this mess: The potential for a backlash among tech companies that scrutinize CEO schedules.
Tesla’s Position:
Tesla has not yet responded formally to the investor letter at this time.
Musk said he would be spending more time with his companies, but did not say he would spend more time at Tesla.
The next few months are vital in assessing how Musk manages his many responsibilities and on whether Tesla can find its footing again.