Wednesday, April 24, 2024

Tesla Investors Slams Elon Musk in Open Letter: 'The Board Has Allowed the CEO to Be Overcommitted' – Tesla (NASDAQ: TSLA), Amalgamated Financial (NASDAQ: AMAL)


in an open letter to Tesla Inc TSLA Board of Directors On Friday, a group of shareholders expressed their frustration with the CEO Elon Muskclaiming that he was being distracted by commitments to other ventures such as Twitter.

In Lettergroup – which included amalgamated bank Execution, Investor Advocate for Social JusticeThe New York City Comptroller’s Office And Sisters of the Good Shepherd criticized the billionaire entrepreneur for allowing Tesla to lose market share in the electric vehicle market while running several companies such as Twitter, spacex And boring company,

“The board has allowed the CEO to overcommit at a time when the company is facing significant challenges, including increased competition, regulatory scrutiny and a stock slide,” the group wrote.

It added, “Corporate boards can and should intervene if a chief executive becomes distracted or excessively focused on other enterprises.”

Shareholders urged the board to ensure Tesla has a CEO who “dedicates substantial time and attention to the company” and “overhauls the board’s composition, replacing directors with close ties to the CEO.” involves doing.”

“Without a full-time CEO and a board willing to provide meaningful oversight, we are concerned that Tesla will be unprepared to effectively navigate an increasingly competitive environment for EV sales, the evolving global regulatory landscape, consumer shifting preferences, ongoing supply chain challenges, and investor expectations,” the shareholders argued.

Read also: How much Tesla stock does Elon Musk own after the latest sale?

“Due to the board’s failure to restrict the CEO’s outside commitments and ensure he remains focused on solving the many challenges facing the company, we have lost confidence in our members,” the group further wrote.

talking to CNN, evan frishbergAmalgamated Bank’s chief stability officer reiterated that investors were concerned about Musk’s distractions but stopped short of calling for Musk’s replacement.

“We are a Tesla investor,” he said. “In terms of governance, we want the board room to be less clubby and more independent and accountable to investors.”

The letter mentioned that the investors who signed the letter own Tesla shares worth $1.5 billion, which is less than 1% of all Tesla shares. The group requested a meeting with the Tesla board to discuss their concerns and suggest solutions by May 25.

now read: If this happens, Elon Musk will be fine with Tesla’s bankruptcy

picture: nvidia corporation via flickr