Tesla investors are reportedly urging CEO Elon Musk to concentrate on turning around the struggling electric car brand. According to a report, a group of investors has written to Tesla chair Robyn Denholm, expressing concerns that Musk’s multiple commitments outside Tesla are diverting his attention from the company’s operations.
Musk has been at the helm of Tesla since 2008 and has led the company to become the most valued car manufacturer globally. However, he has recently been stretched thin with various other responsibilities, including leadership roles at X (formerly Twitter), Neuralink, Starlink, and SpaceX, as well as involvement in the US Presidential election and the newly-formed Department of Government Efficiency under Donald Trump.
The investors’ letter, as reported by CNN, stated, “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.” They emphasized that Tesla deserves a CEO whose time and attention align with the company’s responsibilities.
Tesla’s share price has dropped significantly, falling from around $480 (AUD 747) in mid-December to approximately $355 (AUD 553) currently, with a low of about $220 (AUD 343) in the last six months. The company’s first-quarter performance in 2025 was challenging, with operational income declining 66% compared to the same period in 2024, and global sales dropping 13% year-on-year. Total automotive revenue to the end of March was down 20% to $14 billion (AUD 21.8 billion).
The group of shareholders who penned the letter holds around 7.9 million Tesla shares, representing about 0.2% of publicly traded stock. They are also seeking clarity on Musk’s succession plan and calling for changes in leadership, including the appointment of a new, independent director to provide a fresh perspective.
In response, Musk is expected to step away from his US government role and refocus on his business endeavours. The situation comes as Tesla faces increased competition in the electric vehicle market, having lost its number one position in Australia to the BYD Sealion 7 in April.
