Multiple State Treasurers Tell Musk and Tesla Board to Shape Up

Apr 22, 2025 07:30 PM EDT, Tue

Tesla Board Gets an Earful From State Treasurers Over Musk’s Focus

Story by Dana Hull • April 22, 2025

(Bloomberg) – The treasurers of eight US states have written an open letter to Tesla Inc.’s board of directors questioning the direction of the company and the level of attention Elon Musk is paying to its mounting challenges.

The overseers of funds and investments for California, Illinois and half a dozen other states cite Tesla’s sagging stock, disappointing first-quarter deliveries and surge of trade-ins by vehicle owners as being among their causes for concern.

“Meanwhile, CEO1 Elon Musk continues to divide his attention across multiple companies and a high-profile advisory role within the federal government,” the treasurers wrote. “These external commitments raise serious questions about whether Tesla’s leadership is fully engaged in addressing the company’s core challenges.”

The letter — pulled together in coordination with the advocacy group Americans for Responsible Growth — heaps more pressure on Tesla and Musk ahead of the company releasing first-quarter earnings results after the close Tuesday.

The carmaker’s stock has plunged more than 50% from an all-time high reached in mid-December, when investors initially viewed Musk’s proximity to then President-elect Donald Trump as a positive. The role the Tesla CEO1 has played in advising the administration has instead sparked a global backlash against Musk and his most valuable company.

California’s Malia Cohen, Illinois’ Michael Frerichs and the six other treasurers warn that if Tesla continues to falter, it “will ripple through regional economies” and shake public confidence in the energy transition.

Although Musk moved Tesla’s headquarters to Austin from Silicon Valley in 2021, California is still home to several of the company’s manufacturing and engineering facilities. Several of the states whose treasurers signed the letter — including Washington, Massachusetts, Colorado and Connecticut — have adopted California’s standards aimed at boosting sales of electric vehicles.

In the letter addressed to Robyn Denholm, Tesla’s chair, the treasurers ask the board to clarify how it’s ensuring that Musk and his leadership team are “devoting adequate time and focus to resolving recent performance issues.” The state officials also prod Tesla directors about their approach to executive compensation and how they plan to restore investor confidence.

“The board’s role is especially critical now — to provide strong oversight, uphold fiduciary standards and ensure that the company’s leadership is aligned with the long-term best interests of the company,” the treasurers wrote. “Public officials like us do not take the step of raising these concerns lightly except when the obvious risks demand it.”

2025-04-17 Letter to Tesla Board Chair

April 17, 2025

Robyn Denholm Chair of the Board Tesla 1 Tesla, Inc. Road Austin, TX 78725

Dear Chair Denholm,

We are entrusted with promoting the long-term economic health and financial stability of our states and the people we serve. Tesla, Inc. is not just one of the world’s most valuable companies—it is a major player in the clean energy economy and a leading force in emerging technologies such as robotics and autonomous driving. The company’s success or setbacks have significant implications for workers, regional industries, and innovation ecosystems in our states.

We are increasingly concerned that Tesla’s recent performance signals deeper governance and leadership challenges that, if left unaddressed, could have serious consequences for the company and its stakeholders. In the first quarter of 2025 alone, Tesla’s stock declined by 36%. The company missed delivery targets, recalled a substantial number of vehicles, and experienced a surge in trade-ins for competing brands. Meanwhile, CEO1 Elon Musk continues to divide his attention across multiple companies and a high-profile advisory role within the federal government. These external commitments raise serious questions about whether Tesla’s leadership is fully engaged in addressing the company’s core challenges.

We regularly interact with stakeholders across our states, including institutional investors, industry leaders, workers, and small businesses. We are hearing increasing concern about Tesla’s direction, not only from financial professionals but from those who have looked to Tesla as a leader in clean energy innovation and American industrial renewal. If Tesla falters, the effects won’t be confined to shareholders—they will ripple through regional economies, workforce pipelines, and public confidence in the energy transition.

At a moment when American industrial leadership is facing stiff global competition, it is essential that companies like Tesla are governed with focus, discipline, and clarity of mission. The Board’s role is especially critical now—to provide strong oversight, uphold fiduciary standards, and ensure that the company’s leadership is aligned with the long-term best interests of the company. Public officials like us do not take the step of raising these concerns lightly except when the obvious risks demand it.

We believe the Tesla Board has a responsibility to act decisively to ensure the company returns to a stable and focused trajectory.

We respectfully request the Board provide clarity on the following:

  1. How is the Board ensuring that Mr. Musk and Tesla’s leadership team are devoting adequate time and focus to resolving recent performance issues and guiding the company’s future direction?
  2. In light of the company’s underperformance, how is the Board evaluating whether executive compensation remains aligned with shareholder value and corporate accountability?
  3. How does the Board plan to communicate its strategy for navigating this period of uncertainty and restoring investor and public confidence in Tesla’s leadership?

Finally, we strongly believe Tesla’s Board would benefit from engaging with public sector stakeholders who share an interest in the company’s long-term value and societal impact. We welcome the opportunity to speak further about these concerns and discuss how the Board can take swift and transparent action to restore investor confidence and public trust in Tesla’s leadership and the company’s future.

We welcome a response and the opportunity for continued dialogue.

Signed,

Mike Pellicciotti, Washington State Treasurer2 Deborah B. Goldberg, Massachusetts State Treasurer and Receiver-General Michael W. Frerichs, Illinois State Treasurer Erick Russell, Connecticut Treasurer Laura M. Montoya, New Mexico State Treasurer [David L. Younghttps://treasury.colorado.gov/about-treasurer-dave-young), Colorado State Treasurer3 Mike Pieciak, Vermont State Treasurer Malia M. Cohen, California State Controller

The overseers of funds and investments for ,California, Illinois and half a dozen other states cite Tesla’s sagging stock, disappointing first-quarter deliveries and surge of trade-ins by vehicle owners as being among their causes for concern.

“Meanwhile, CEO1 Elon Musk continues to divide his attention across multiple companies and a high-profile advisory role within the federal government,” the treasurers wrote. “These external commitments raise serious questions about whether Tesla’s leadership is fully engaged in addressing the company’s core challenges.”

  1. @RalphHightower: With the myriad of companies that [Elon] is head of, he can be referred as a fractional CEO:
    • The Boring Company
    • Neuralink
    • SpaceX
    • Starlink
    • Tesla
    • Twitter
    • X
    • xAI ↩ ↩2 ↩3 ↩4

  2. Washington State Treasurer Pellicciotti has signed on solely in his official capacity as a state treasurer. ↩

  3. Colorado State Treasurer Young has signed on as an elected official and not as a fiduciary of any fund. ↩

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