Major pension fund leaders are demanding Tesla's board require CEO Elon Musk to work at least 40 hours per week for the electric vehicle company, citing what they call a "cause for serious concern" amid mounting challenges facing the automaker, according to Teslarati.
The investor group holds a combined 7.9 million Tesla shares and sent a letter to board chair Robyn Denholm expressing alarm over the company's deteriorating performance.
"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," the investors wrote in their demand.
The pension fund coalition includes the SOC Investment Group, American Federation of Teachers, New York City Comptroller Brad Lander, and Oregon State Treasurer Elizabeth Steiner.
These investors attribute many of Tesla's problems to Musk's external activities, particularly his role as the de facto head of the Department of Government Efficiency under the Trump administration. Musk officially exited that role last month.
The investors also demanded a clear succession plan and limits on directors' external board commitments, per Teslarati.
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The timing proves particularly challenging for Tesla, which has struggled significantly this year. Tesla's stock plummeted 36% in Q1 of 2025, marking its worst performance since 2022, per CNBC. The company delivered 336,681 vehicles in the first three months of the year, representing its largest quarterly sales drop in history.
Many consumers viewed Tesla EVs as a political statement and chose not to support the brand. Stocks also dropped on June 5 amid Musk's public spat with President Trump.
Tesla's troubles have extended globally. While the automaker was already experiencing slowing sales prior to Musk's involvement with the U.S. federal government, European sales also plunged as protests erupted at Tesla showrooms worldwide.
Customers now face long wait times and potentially higher prices as the company navigates production challenges from its Model Y refresh.
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The declining sales could slow broader electric vehicle adoption, but increased competition from other automakers may drive innovation and make EVs more accessible to mainstream customers.
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