Tesla shareholders are pressing CEO Elon Musk to commit to a minimum of 40 hours per week managing the electric vehicle (EV) giant, as the company grapples with a sharp drop in stock price and falling sales. A letter from investors, reported by The Times on May 28, 2025, highlights concerns over Musk’s divided attention across his various ventures, including SpaceX, X, and the U.S. Department of Government Efficiency (Doge), at a critical time for Tesla.

Shareholders Cite Musk’s External Roles as a Distraction

In a letter to Tesla chairwoman Robyn Denholm, a group of pension fund investors, including the American Federation of Teachers and Brad Lander, New York City comptroller, expressed alarm over Tesla’s “plummeting global reputation.” They argue that Musk’s external commitments have “diverted his time and attention from actively managing Tesla’s operations, as any other chief executive officer of a publicly traded company would be expected to do,” according to the letter published in The Times. The investors, holding 7.9 million shares, are urging the Tesla board to enforce a minimum time commitment for Musk under any new chief executive compensation plan.

The letter also calls for a clear chief executive succession plan and an “over-boarding policy for directors” to limit outside board commitments at both public and private companies. This push comes as Musk, 53, juggles leadership roles at Tesla, SpaceX, X, and The Boring Company, while also pledging in April to “significantly” cut back on his involvement with Doge following Tesla’s reported sales and profit declines earlier this year.

Tesla’s Struggles: Stock Price and Sales Take a Hit

Tesla’s challenges are evident in its financial performance. The company’s stock price has fallen by more than 24% since its peak in December 2024, while first-quarter sales this year dropped 13% compared to the same period in 2024. The letter to Denholm also notes calls for divestment in Europe and the U.S., signaling broader concerns about Tesla’s market position. For EV enthusiasts and owners, this decline raises questions about the company’s ability to maintain its lead in the competitive EV industry, especially as rivals like Rivian and Lucid gain traction with new models.

The shareholders argue that Musk’s absence has amplified Tesla’s long-term problems. “For many years, the amount of time CEO Musk has devoted to managing Tesla has been constrained because of his multiple privately held companies and other outside endeavors,” the letter states. They add that “the current crisis at Tesla puts into sharp focus the long-term problems at the company stemming from the CEO’s absence, which is amplified by a board that appears largely uninter’Univers ested and unwilling to act in the best interest of all Tesla shareholders by demanding Mr Musk’s full-time attention on Tesla.”

Industry Implications for EV Innovation and Leadership

Tesla’s struggles could ripple across the EV sector, where the company has long been a pioneer in battery technology and autonomous driving systems. A distracted leadership might slow Tesla’s progress on projects like the Full Self-Driving (FSD) suite or the development of more affordable models, such as the anticipated $25,000 compact EV. For EV owners, this could mean delays in software updates or new vehicle launches, while competitors capitalize on Tesla’s vulnerabilities.

The shareholders’ demand for a 40-hour workweek commitment from Musk underscores a broader tension in the EV industry: balancing visionary leadership with operational focus. As Tesla navigates this crisis, its ability to innovate and meet consumer demand for efficient, high-performance EVs hangs in the balance. The company did not respond to a request for comment, leaving stakeholders waiting for the board’s next move.