More and more large institutional investors are concerned about the manner of managing Tesla by Elon Musk. In a special letter they demand greater commitment of the billionaire in the company's activities and specific activities on the part of the supervisory board.
A group of large pension funds demanded that Elon Musk undertake to work at least 40 hours a week in Tesla, at the same time calling for corporate order reforms to remedy the “crisis” in the company.
$ 950 billion pressure. Financial institutions demand changes in Tesla
The letter addressed on May 28 to the Chairwoman of the Supervisory Board of Tesla, Robyn Denholm, was signed by 12 long -term institutional investors, including New York financial controller, American Teachers' Federation and European funds such as Danish Akademmerpension. In total, they manage assets worth about $ 950 billion.
Musk has repeatedly clashed with active investors, but such coordinated pressure from large financial institutions is rare and means exacerbating their actions to change in the company.
Although the signatories of the letter have only 0.25 percent. Tesla's shares, it shows how The polarizing position of Muska In American policy, she prompted some of the assets managing to question his actions more open.
The letter says:
“The current crisis at Tesla highlights long -term problems resulting from the president's absence, intensified by the supervisory board, which seems largely uninterested and reluctant to act in the best interest of all shareholders, demanding full commitment to Tesla from Musk.”
To remedy the growing dissatisfaction of shareholders and falling sales, Musk promised to focus on Tesla again and limit his role in the administration of President Donald Trump. Since this declaration, Tesla's shares have affected a bit, but they are still 17 percent. lower than at the peak in December.
New package, new conditions. Investors want Musk's full commitment to Tesla
Musk has long criticized activist investors who are trying to influence, having only small shares.
The salary package worth $ 54 billion granted to Musk in 2018 was rejected twice by the court in Delaware after a shareholder with a shareholder with approx. 200 shares. Tesla has appealed to the court this year.
The “Financial Times” announced this month that Tesla's supervisory board appointed a special committee to consider the new Musk remuneration package.
The list of pension funds stated that each new remuneration plan for Musk should contain an obligation to allocate at least 40 hours a week to direct Tesla.
“Considering the managerial roles of Musk in four private companies and in its foundation, the council must make sure that Tesla is not treated as one of many competing obligations.”
Musk previously argued that he needed a new motivational package to maintain concentration on Tesla, taking into account his obligations towards other companies, including the Social Platform X, the Artificial Intelligence Design XAI, Spacex, Neuralink and The Boring Company.
Does Tesla need a new leader? Investors expect changes to the board
Pension funds cooperated with the SOC Investment Group – Strategic Organizing Center investment arm, trade union coalition, which this year was fighting for influence in Starbucks and became a symbol of the reviving trade union movement in the USA.
The letter also states that Tesla's supervisory board should develop a succession plan regarding the highest managerial positions and appoint a new member of the Council who will be “truly independent without personal connections with other members of the Council.”
Cited by “Financial Times” Elizabeth Steiner, Treasurer of the State Oregon and the signatory of the letter, said: “If you are no longer ready to be the president of Tesla – fine. Just help us determine who he will be.”
Last week, Musk announced that he would limit his expenses for political activities, and posted an entry in social media in which he assured that he would focus more on his business empire.
“I go back to work 24/7 and sleeping in conference rooms, server rooms and factories. I have to be maximally focused on x/xai and tesla … because we are soon implementing key technologies” – he wrote on platform X.
Back to spend 24/7 at work and sleeping in conference/server/factory rooms.
I must be super focused on š¯•¸/xai and tesla (plus starship launch next week), as we have critical technologies rolling out.
As evidenced by the š¯•¸ Uptime Issues This Week, Major Operational …
– Elon Musk (@elonmusk) May 24, 2025
Musk's political ambitions are reflected in Tesla. Bojkoty and customer protests
Musk helped to set up the so -called Department of Government Efficiency (DOGE), which aims to cut billions of dollars from US budget expenditure. The controversial role of Musk, however, caused a wave of criticism towards Tesla. Some consumers began to boycott the brand, and the company faces protests in sales salons and acts of vandalism aimed at its vehicles.
Randi Weingarten, chairwoman of the American Federation of Teachers, representing members with retirement investments worth $ 4 trillion, said: “It is obvious that the company is currently in crisis and needs intensive care.”
At the end of February, the AFT called for six large asset management companies – Blackrock, Vanguard, State Street, T Rowe Price, Fidelity and Tiaa – to “re -consider” his involvement in Tesla after a sharp decline in her action course.
Tesla's shareholders supported Muska and the management board in their efforts to restore his salary package from 2018, and in last year they approved the transfer of the company's headquarters to Texas, where less stringent regulations apply.
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