Just as Elon Musk announced that his time at the White House was coming to an end, a report claimed that the tech billionaire was put on a deadline by Tesla investors, who asked the board to make him work full-time. The Washington Post on Wednesday cited a letter from ‘some skeptical’ backs of the company to report that the board has been asked to add a ‘new, truly independent member’ and lay out a ‘succession plan’.
According to the report, a group of activist Tesla shareholders sent a letter to board chair Robyn Denholm on Wednesday. They asked for a guarantee that Musk would devote at least 40 hours a week to the company. The Washington Post further added that the letter was signed by SOC Investment Group.
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This comes as investors and employees have been reportedly frustrated over Musk's clashing roles - at the White House and Tesla CEO. The EV maker's recent earnings call revealed a 71% drop in profits and a 13% fall in sales compared with the same quarter in 2024. The company's stock price has fallen about 24% since December, when it touched a high.
“The current crisis at Tesla puts into sharp focus the long-term problems at the company stemming from the CEO’s absence, which is amplified by a Board that appears largely uninterested and unwilling to act in the best interest of all Tesla shareholders by demanding Mr. Musk’s full-time attention on Tesla,” the letter said, according to the report.
{{/usCountry}}“The current crisis at Tesla puts into sharp focus the long-term problems at the company stemming from the CEO’s absence, which is amplified by a Board that appears largely uninterested and unwilling to act in the best interest of all Tesla shareholders by demanding Mr. Musk’s full-time attention on Tesla,” the letter said, according to the report.
{{/usCountry}}“Tesla’s stock price volatility, declining sales, as well as disconcerting reports regarding the company’s human rights practices, and a plummeting global reputation are cause for serious concern.”
Neither Elon Musk nor Tesla have issued a statement about the pressures from the board yet.
Musk on Wednesday tweeted that he is ready to step down from DOGE and his role as the senior adviser to President Donald Trump.
“As my scheduled time as a Special Government Employee comes to an end, I would like to thank President @realDonaldTrump for the opportunity to reduce wasteful spending. The @DOGE mission will only strengthen over time as it becomes a way of life throughout the government,” he said on X, platform formerly known as Twitter.