Tesla investors are reportedly calling on CEO Elon Musk to refocus his efforts on turning around the struggling electric car brand. A group of investors has written a letter to Tesla chair Robyn Denholm, expressing concern that Musk’s numerous outside commitments are diverting his attention from the company’s operations.
Investors’ Concerns
Musk’s leadership roles at X (formerly Twitter), Neuralink, Starlink, and SpaceX, as well as his involvement in the recent US Presidential election and the newly-formed Department of Government Efficiency under Donald Trump, have raised concerns among investors about his ability to manage Tesla effectively.
The letter, reported by CNN, states that Musk’s “outside endeavours appear to have diverted his time and attention from actively managing Tesla’s operations.” The investors argue that Tesla deserves a CEO whose time and attention align with the scale of the company’s responsibilities.
Tesla’s Current Struggles
Tesla’s share price has fallen significantly, dropping from around $480 in mid-December to around $355 currently. The company’s operational income has declined 66% in the first quarter of 2025 compared to the same period in 2024, while global sales have dropped 13% year-on-year. As a result, total automotive revenue to the end of March was down 20% to $14 billion.
Investor Demands
The group of shareholders who penned the letter, holding around 7.9 million Tesla shares, are also seeking clarity on Musk’s succession plan and calling for changes in leadership. They believe that the company’s current disclosure regarding the CEO succession plan does not assure investors that the Board is adequately prepared to bring on a new individual with the appropriate skillset if necessary.
The investors are also asking for further board refreshment by rotating at least one director off and appointing a new, truly independent director who can provide a fresh perspective.
Tesla has not officially responded to the investors’ concerns. However, Musk has promised to refocus on his business endeavours after stepping away from his US government role.
