Tesla Shareholders to Musk: Commit 40 Hours or Go Electric Somewhere Else!
Tesla investors are sounding the alarm, urging Elon Musk to clock in at least 40 hours a week, accusing him of juggling too many side gigs while Tesla’s stock takes a nosedive and its reputation plummets.
With Tesla’s stock tumbling 12% this year and sales plummeting nearly 50% in Europe, a group of shareholders controlling about 7.9 million shares is pressing Musk to prioritize his role at the electric car company over his various side hustles, including his time at the Department of Government Efficiency (DOGE). They demand a clear succession plan and the addition of independent board members, all while trying to figure out if Musk is working for Tesla or just using it as a springboard for his latest intergalactic dreams.
The investors are particularly concerned about how Musk’s extracurricular commitments, such as his ventures with SpaceX and Neuralink, have diverted his attention from the factory floors of Tesla. With the production line buzzing away, it's hard for investors not to feel a bit abandoned, especially when some of them have seen their shares drop faster than a Tesla Model 3 in a stock market freefall.
In their letter to Musk, shareholders pointed out that while he may be revolutionizing space travel, Tesla is reportedly busy revolutionizing its way out of the top ten most admired American brands—now sitting pretty at number 95. As one shareholder might put it, 'Elon, could you save the moon shots for after you've launched the next model?'.
The crux of the issue, according to these shareholders, is Musk’s apparent inability to commit fully to running Tesla. In between initiating controversial donations that have raised eyebrows—such as a $300 million contribution to pro-Trump efforts—Musk has somehow managed to turn his attention away from ensuring that Tesla remains the darling of the electric vehicle industry. Some investors even noted the parallels between his distracted management and a kid playing Rocket League alone while his team scurries to stay afloat in an actual soccer match.
The clamoring for a new governance policy has drawn significant media attention. Investors propose limiting directors' external commitments—a fitting measure, given that Tesla might as well come with a disclaimer: 'Caution: When Elon is in another galaxy, please readjust expectations of quarterly earnings.' The notion of including at least one independent board member to challenge Musk’s directional whims could usher in a refreshing change of pace; after all, it’s not like he’s going to play solitaire while they’re trying to discuss the future of the company.
The impending storm is amplified by the ongoing crises at Tesla, which has seen a stark decline in sales. April marked a nearly 50% drop in European deliveries as competitors—perhaps eyeing their moment to strike—seemingly waited in the wings. Musk’s commitment to other projects might just be a contributing factor here. After all, when the big showman is off making rockets go whoosh, someone has to ensure the cars keep rolling off the assembly line.
Despite the ongoing turmoil, Musk has signaled a renewed focus on Tesla post-stock drop—a bit like a runner taking a breather before the final lap. However, it remains to be seen whether his strategy is less about steering Tesla back on course and more about avoiding asking the proverbial backseat driver how they got there. Investors are left wondering if they should trust a captain who seems to be operating with one hand on the wheel and the other scrolling through tweets.
The Tesla board isn’t exactly winning any admirers in this debacle either, as shareholders expressed their frustrations at what they describe as the board's failure to act in the best interest of all Tesla shareholders. Many feel that while Elon might be pressing the gas pedal down hard on various projects, the board is riding shotgun, holding tight to a cooler of lukewarm decisions.
As the weekend nears, anxious investors are left to continuously refresh their stock market apps, tuning in to see if their once-promising shareholdings will play a game of hide-and-seek verging on hide. Perhaps what they really want to know is whether Musk's upcoming strategy involves more time cranking out electric cars and less time launching electric tweets.
In the end, it seems Elon Musk may need a serious reality check. The question is, will he be back at the Tesla headquarters putting in those requested 40 hours a week, or is he quite content as the man visiting different planets while Tesla continues to take a damaged detour through the corporate landscape? The shareholders watch with bated breath, hoping for his return—and more importantly, their stock's breathtaking recovery.