Tesla investors are fed up with Elon Musk’s juggling act. A coalition representing 7.9 million shares demands he commit at least 40 hours weekly to Tesla, as the company faces plummeting profits and sales. With Musk spread thin across Twitter, SpaceX, and his political ventures, Tesla’s brand reputation has tanked to 95th among U.S. brands. These shareholders want real changes: focused leadership, succession planning, and independent oversight. The drama’s just beginning to unfold.
While Elon Musk juggles his growing empire of companies and political pursuits, Tesla investors have finally had enough. A coalition led by SOC Investment Group, representing 7.9 million shares, sent a stern letter to board chair Robyn Denholm demanding that Musk commit at least 40 hours weekly to Tesla operations. Sure, it’s only 0.2% of Tesla’s total shares, but the message is loud and clear.
And who can blame them? Tesla’s latest numbers aren’t exactly inspiring confidence. With a 71% drop in quarterly profits and vehicle sales down 13% year-over-year, the company’s performance has taken a nosedive. European sales fell by a staggering nearly 50 percent this April compared to last year. Tesla’s brand reputation has plummeted to 95th among U.S. brands – not exactly the kind of stat you’d expect from a tech pioneer. Analyst Gary Black’s firm made waves by selling their entire Tesla position for the first time since 2021. Their decision reflects the importance of risk tolerance when managing investment portfolios.
Musk’s plate isn’t just full; it’s overflowing. Between his DOGE taskforce duties, Trump campaign support, and running SpaceX, xAI, and Twitter, Tesla seems like just another side hustle. He recently admitted he “probably did spend a bit too much time on politics.” You think?
The shareholders aren’t just asking for more face time – they want a real succession plan, limits on directors’ outside commitments, and at least one truly independent board member. After a Delaware judge struck down Musk’s $56 billion compensation package citing weak oversight, these demands don’t seem unreasonable.
Musk’s response? He’s stepping back from his government role, claiming he’ll reduce his involvement “significantly.” But his snarky swipe at the demanding shareholders suggests he’s not exactly thrilled about being told how to manage his time.
This showdown isn’t just about Tesla – it’s reshaping how tech companies view leadership accountability. The days of CEOs spreading themselves thin across multiple ventures might be numbered.
Tech investors are sending a clear message: pick a lane and stay in it. For Tesla shareholders watching their company’s performance suffer while their CEO tweets about politics and cryptocurrency, that message couldn’t come soon enough.
