Tesla is a well-known electric car maker, but its CEO Elon Musk is more than just a car mogul. He’s also CEO of space exploration technology company SpaceX, brain-computer interface company Neuralink and social media Twitter, and founder of The Boring Company. Such a busy life has upset some Tesla investors, who expressed their opinions to Tesla’s board of directors through an open letter.
The letter was signed by the Amalgamated Bank, the New York City Office of the Inspector General of Finance, PensionDanmark, Investor Advocates for Social Justice and the Sisters of the Good Shepherd. Sisters of the Good Shepherd, among others. In their letter, they say the board should intervene in Elon Musk’s distractions or find a CEO who can focus full-time on Tesla. They also suggested reforming the board to allow directors with close ties to Elon Musk to step down.
Such a strategy is necessary, these investors argue, because Tesla is facing increasing competition in the electric vehicle market, as well as multiple pressures from the global regulatory environment, consumer preferences, supply chain challenges and investor expectations. They are concerned that Tesla will not be able to deal with these issues without a full-time CEO and a board that can provide effective oversight.
This is not the first time Elon Elon Musk’s part-time status as Tesla’s CEO has been questioned. The topic was also brought up last year during a trial over Elon Musk’s compensation package. According to former Tesla director Antonio Gracia, the board had considered finding someone else to replace Elon Musk as CEO, but it didn’t work out. “We couldn’t find the right person for the job,” Gracia said.