{"id":81964,"date":"2025-04-22T11:54:47","date_gmt":"2025-04-22T15:54:47","guid":{"rendered":"https:\/\/autosector.com\/?p=81964"},"modified":"2025-04-22T11:54:47","modified_gmt":"2025-04-22T15:54:47","slug":"state-treasurers-ask-teslas-board-tsla-to-do-job-reign-in-elon-musk","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=81964","title":{"rendered":"State treasurers ask Tesla’s board (TSLA) to do its job and reign in Elon Musk"},"content":{"rendered":"
\n\t\"\"<\/figure>\n

Tesla (TSLA) board members have received a wake-up call letter from eight state treasurers, asking them to fulfill their duties and supervise the company\u2019s CEO, Elon Musk.<\/p>\n

Will they ignore this warning as well?<\/p>\n

<\/p>\n

There have been concerns about Tesla\u2019s board sleeping at the wheel for a while now.<\/p>\n

Their job is to oversee Tesla\u2019s management for the benefit of shareholders, but Tesla\u2019s stock is down almost 40% this year while the CEO is splitting his time between 6 different companies and projects while alienating most of Tesla\u2019s consumer base.<\/p>\n

\tAdvertisement – scroll for more content<\/span><\/p>\n

Yet, the board hasn\u2019t said a word about it.<\/p>\n

The situation lends weight to the argument that the board is entirely under Musk\u2019s control, which is the main point of contention in Tesla\u2019s $55 billion CEO compensation case<\/a>.<\/p>\n

Now, eight state treasurers have joined forces to raise their concerns with the board. They wrote in a letter addressed to Robyn Denholm, chair of Tesla\u2019s board:<\/p>\n

\n

We are increasingly concerned that Tesla\u2019s recent performance signals deeper governance and leadership challenges that, if left unaddressed, could have serious consequences for the company and its stakeholders. In the first quarter of 2025 alone, Tesla\u2019s stock declined by 36%. The company missed delivery targets, recalled a substantial number of vehicles, and experienced a surge in trade-ins for competing brands. Meanwhile, CEO Elon Musk continues to divide his attention across multiple companies and a high-profile advisory role within the federal government. These external commitments raise serious questions about whether Tesla\u2019s leadership is fully engaged in addressing the company\u2019s core challenges.<\/p>\n<\/blockquote>\n

In the letter, the treasurers remind Tesla\u2019s board of its duty \u201cto provide strong oversight, uphold fiduciary standards, and ensure that the company\u2019s leadership is aligned with the long-term best interests of the company.\u201d<\/p>\n

They are directly asking the board three questions:<\/p>\n

    \n
  1. How is the Board ensuring that Mr. Musk and Tesla\u2019s leadership team are devoting adequate time and focus to resolving recent performance issues and guiding the company\u2019s future direction?<\/li>\n
  2. In light of the company\u2019s underperformance, how is the Board evaluating whether executive compensation remains aligned with shareholder value and corporate accountability?<\/li>\n
  3. How does the Board plan to communicate its strategy for navigating this period of uncertainty and restoring investor and public confidence in Tesla\u2019s leadership?<\/li>\n\n<\/ol>\n

    Tesla is going to release its Q1 2025 financial results today<\/a>, hold its earnings conference call, and have a \u201clive company update.\u2019 Maybe some of these questions will be answered.<\/p>\n

    Here\u2019s the letter in full:<\/p>\n

    \n

    2025-04-17 Letter to Tesla Board Chair<\/h3>\n

    April 17, 2025<\/p>\n

    Robyn Denholm<\/p>\n

    Chair of the Board<\/p>\n

    Tesla, Inc.<\/p>\n

    1 Tesla Road<\/p>\n

    Austin, TX 78725<\/p>\n

    Dear Chair Denholm,<\/p>\n

    We are entrusted with promoting the long-term economic health and financial stability of our states and the people we serve. Tesla, Inc. is not just one of the world\u2019s most valuable companies\u2014it is a major player in the clean energy economy and a leading force in emerging technologies such as robotics and autonomous driving. The company\u2019s success or setbacks have significant implications for workers, regional industries, and innovation ecosystems in our states.<\/p>\n

    We are increasingly concerned that Tesla\u2019s recent performance signals deeper governance and leadership challenges that, if left unaddressed, could have serious consequences for the company and its stakeholders. In the first quarter of 2025 alone, Tesla\u2019s stock declined by 36%. The company missed delivery targets, recalled a substantial number of vehicles, and experienced a surge in trade-ins for competing brands. Meanwhile, CEO Elon Musk continues to divide his attention across multiple companies and a high-profile advisory role within the federal government. These external commitments raise serious questions about whether Tesla\u2019s leadership is fully engaged in addressing the company\u2019s core challenges.<\/p>\n

    We regularly interact with stakeholders across our states, including institutional investors, industry leaders, workers, and small businesses. We are hearing increasing concern about Tesla\u2019s direction, not only from financial professionals but from those who have looked to Tesla as a leader in clean energy innovation and American industrial renewal. If Tesla falters, the effects won\u2019t be confined to shareholders\u2014they will ripple through regional economies, workforce pipelines, and public confidence in the energy transition.<\/p>\n

    At a moment when American industrial leadership is facing stiff global competition, it is essential that companies like Tesla are governed with focus, discipline, and clarity of mission. The Board\u2019s role is especially critical now\u2014to provide strong oversight, uphold fiduciary standards, and ensure that the company\u2019s leadership is aligned with the long-term best interests of the company. Public officials like us do not take the step of raising these concerns lightly except when the obvious risks demand it.<\/p>\n

    We believe the Tesla Board has a responsibility to act decisively to ensure the company returns to a stable and focused trajectory.<\/p>\n

    We respectfully request the Board provide clarity on the following:<\/p>\n

      \n
    1. How is the Board ensuring that Mr. Musk and Tesla\u2019s leadership team are devoting adequate time and focus to resolving recent performance issues and guiding the company\u2019s future direction?<\/li>\n
    2. In light of the company\u2019s underperformance, how is the Board evaluating whether executive compensation remains aligned with shareholder value and corporate accountability?<\/li>\n
    3. How does the Board plan to communicate its strategy for navigating this period of uncertainty and restoring investor and public confidence in Tesla\u2019s leadership?<\/li>\n<\/ol>\n

      Finally, we strongly believe Tesla\u2019s Board would benefit from engaging with public sector stakeholders who share an interest in the company\u2019s long-term value and societal impact. We welcome the opportunity to speak further about these concerns and discuss how the Board can take swift and transparent action to restore investor confidence and public trust in Tesla\u2019s leadership and the company\u2019s future.<\/p>\n

      We welcome a response and the opportunity for continued dialogue.<\/p>\n

      Signed,<\/p>\n

      Mike Pellicciotti, Washington State Treasurer
      Deborah B. Goldberg, Massachusetts State Treasurer and Receiver-General
      Michael W. Frerichs, Illinois State Treasurer
      Erick Russell, Connecticut Treasurer
      Laura M. Montoya, New Mexico State Treasurer
      David L. Young, Colorado State Treasurer
      Mike Pieciak, Vermont State Treasurer
      Malia M. Cohen, California State Controller<\/p>\n<\/blockquote>\n

      Electrek\u2019s Take<\/h2>\n

      Tesla is a $700 billion publicly traded company that is run like a family business by Musk, who owns just 13% of the float.<\/p>\n

      The board, which was so handsomely rewarded that it had to return almost $1 billion worth of compensation as part of a shareholder lawsuit<\/a>, is letting Musk do whatever he wants without any objection.<\/p>\n

      It\u2019s clear that they have a quid pro quo with Musk, whereby they receive compensation at a rate several times higher than any other similarly sized company in exchange for allowing Musk to run Tesla as if it were his private company.<\/p>\n

      While I am glad they sent this letter, I doubt that a group of state treasurers will convince Tesla\u2019s board to do anything.<\/p>\n

      At this point, they are either completely fine with Musk destroying Tesla or they believe his claims about self-driving technology.<\/p>\n

      \n

      FTC: We use income earning auto affiliate links.<\/em> More.<\/a><\/p>\n

      <\/div>\n","protected":false},"excerpt":{"rendered":"

      Tesla (TSLA) board members have received a wake-up call letter from eight state treasurers, asking them to fulfill their duties and supervise the company\u2019s CEO, Elon Musk. Will they ignore this warning as well? There have been concerns about Tesla\u2019s board sleeping at the wheel for a while now. Their job is to oversee Tesla\u2019s […]<\/p>\n","protected":false},"author":1,"featured_media":8313,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"class_list":["post-81964","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-cars"],"_links":{"self":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/81964","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=81964"}],"version-history":[{"count":0,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/81964\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/media\/8313"}],"wp:attachment":[{"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=81964"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=81964"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=81964"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}