Earlier this week, SHARE and a group of global investors wrote to Tesla Board Chair Robyn Denholm. The investors, representing nearly 8 million of the company’s shares, are deeply concerned about the lack of board oversight at Tesla, especially in light of CEO Elon Musk’s growing distractions and unchecked influence on the Company’s performance and reputation.
Many of SHARE’s clients invested in Tesla because of the company’s bold mission to drive the transition to a more sustainable future. But in recent months, it has become clear that Tesla is at a crossroads. Sales have fallen, its stock is down more than 24 per cent since December, and the company’s brand — once a global symbol of innovation — is being overshadowed by controversies linked directly to Musk’s outside activities.
It’s no secret that Musk already divided his time across several private companies, but this year he added a role with the Trump administration in the disastrous U.S. “Department of Government Efficiency.” Tesla deserves a full-time CEO — especially now, in a moment of strategic uncertainty and intensifying competition. Musk’s own statements suggest he may only spend one day a week on Tesla. That’s not good enough, and the Board has yet to hold him meaningfully accountable.
Our letter urges the Board to adopt four key reforms:
- First, any new compensation plan for Musk must require a full-time commitment — at least 40 hours a week.
- Second, Tesla needs a clear, public CEO succession plan. Investors shouldn’t be left wondering what happens if the current leadership falters.
- Third, directors must be subject to stricter limits on how many other boards they can serve on. Overcommitted board members can’t provide effective oversight.
- Finally, the Board must appoint at least one new, truly independent director — someone without personal ties to Musk or existing board members — to bring fresh perspective and credibility.
This isn’t about the short-term distractions of Musk’s most recent public work. It’s about long-term value. Investors are already walking away, from pension funds in Denmark to calls for divestment in New York. The Board’s delay in addressing these issues puts the company at risk of lasting damage.
SHARE and our co-signatories are calling on Tesla’s Board to act now. Governance reform isn’t just good practice. It’s essential to Tesla’s future.
