Tesla is facing pressure not just from the market but from its own shareholders.
A powerful group of investors, including major pension funds, is calling on Tesla CEO Elon Musk to dedicate at least 40 hours a week solely to the electric vehicle company. This demand comes amid falling Tesla sales and a sharp decline in stock value.
Investors say it’s time for Musk to return his full focus to Tesla and address the growing concerns around leadership and performance.
The coalition of investors includes 12 institutional firms managing over $950 billion in assets. These groups include influential names like the New York City Comptroller’s Office, Denmark’s AkademikerPension, the American Federation of Teachers, and the Oregon State Treasurer.
Collectively, they own nearly 7.9 million Tesla shares. Their influence is significant, and their message is clear: Elon Musk must treat Tesla like a full-time job again.
In a letter addressed to Tesla Chair Robyn Denholm, the investors laid out specific expectations. They demanded Elon Musk commit to a 40-hour workweek at Tesla, arguing that anything less would be detrimental to the company’s future.
The group also urged the Tesla board to improve corporate governance by:
Creating a CEO succession plan
Restricting board members from serving on too many boards
Appointing an independent director without ties to Musk
This push reflects broader concerns about Musk’s split time between his many companies.
Tesla’s disappointing Q1 2025 results have added urgency to these concerns. The automaker reported a 13% drop in vehicle deliveries—the worst performance in several years. The stock has also fallen 24% since late 2024.
Investors believe Elon Musk’s divided attention is one of the contributing factors. With growing competition in the EV market from companies like BYD, Ford, and Rivian, shareholders say Tesla cannot afford distracted leadership.
Elon Musk is juggling several major roles. Aside from being CEO of Tesla, he leads SpaceX, owns X (formerly Twitter), runs Neuralink and The Boring Company, and recently launched xAI, an artificial intelligence startup.
This workload has raised serious questions among Tesla investors. Can one person effectively lead so many billion-dollar ventures? And more importantly, should Tesla continue to rely on a part-time CEO?
Many investors say no.
As of now, neither Elon Musk nor Tesla’s board has issued a public response to the investors’ letter. Musk has, in the past, claimed to be "working 24/7" across all his ventures, including Tesla.
But investors are no longer satisfied with vague assurances. They are demanding transparency and accountability. With Tesla’s next shareholder meeting approaching, these demands could become a central topic of discussion.
Another point of contention is Musk’s future compensation. His previous $56 billion pay package has faced legal challenges and public backlash. Investors want any future Tesla pay plans to be based on measurable full-time commitment.
In other words, no more giant bonuses without proof of focused leadership.
The electric vehicle market is evolving fast. While Tesla remains a dominant player, new rivals are entering the space with strong momentum. Industry watchers say Tesla needs steady leadership to maintain its competitive edge.
For many investors, that means Elon Musk must return to being a full-time Tesla CEO—especially now, as EV market dynamics shift and global sales slow.
Tesla’s shareholders have made their stance clear. They want Elon Musk to commit to a 40-hour workweek and prioritize Tesla over his other ventures.
This isn’t just about one man’s schedule—it’s about the future direction of one of the world’s leading EV companies. Will Musk agree to these terms? Will Tesla’s board take action?
What happens next could determine the company’s growth trajectory—and Musk’s legacy as a corporate leader.
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