Tesla investors demand Musk's 40-hour weekly commitment

A group of Tesla investors managing 7.9 million shares urged the company’s board to secure CEO Elon Musk’s commitment of at least 40 hours per week.

In a letter sent May 28, they expressed concerns over Musk’s limited involvement as Tesla faces declining sales and reputational challenges.

They highlighted issues such as reduced electric vehicle sales, stock price fluctuations, and a damaged brand image.

Tesla’s sales in Europe fell by nearly 50% in April compared to last year, continuing a downward trend from the first quarter.

The company’s stock has dropped 12% year-to-date, underperforming the Nasdaq index, which is down 1%.

The letter also criticized Musk’s outside activities, including his role with the US Department of Government Efficiency (DOGE) and political endorsements, suggesting these have hurt Tesla’s reputation.

The investors requested a clear management succession plan and restrictions on directors’ external commitments. They also called for the appointment of an independent director without ties to current board members.

Tesla recently added Jack Hartung, former CFO of Chipotle, to the board, but he has previous connections to Kimbal Musk, Elon Musk’s brother

🔗 Source: CNBC

🧠 Food for thought

1️⃣ Tesla’s market dominance erodes as competition accelerates

Tesla’s recent sales decline illustrates how quickly market leadership can shift in maturing industries.

The company’s U.S. sales dropped nearly 9% in the first quarter of 2025, even as the overall EV market grew by 11%, showing a clear loss of market position 1.

Tesla’s market share has contracted significantly, falling from 51% to 44% over the past year as traditional manufacturers successfully introduced competitive models 2.

General Motors has emerged as a particularly strong challenger, increasing its EV market share from 6% to 11% with models like the Chevrolet Equinox EV, which offers 300+ miles of range at around $35,000 1.

This pattern mirrors historical transitions in other industries where early innovators eventually face profitability challenges as established companies with manufacturing expertise, distribution networks, and customer loyalty enter the market with competitive alternatives.