Tesla Board Questioned For Elon Musk’s Lack Of Focus By State Treasurers Ahead Of Q1 Earnings

Tesla (TSLA) is facing renewed scrutiny from institutional investors after eight U.S. state treasurers issued an open letter to the company’s board questioning the direction of the business and CEO Elon Musk’s focus amid mounting operational challenges.

The officials, who oversee public funds for California, Illinois, Oregon, Washington, and several other states, cited a range of concerns, including Tesla’s declining share price, weak first-quarter deliveries, and a spike in trade-ins by vehicle owners. 

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

The letter, released Tuesday and coordinated with the advocacy group Americans for Responsible Growth, adds pressure on Musk ahead of the company’s quarterly earnings release scheduled for after the bell on Tuesday.

Addressed to board chair Robyn Denholm, the letter urges Tesla’s directors to explain how they are ensuring that Musk and his team are prioritizing core issues. It also calls for clarity on executive compensation and steps being taken 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.

Tesla’s stock has fallen more than 50% since peaking in December, when Musk’s association with then-President-elect Donald Trump was initially seen as a positive. 

The treasurers cited the stock’s steep decline, saying it raises concerns about broader economic implications for states that are heavily invested in clean energy manufacturing.

Tesla’s stock rose more than 4% Tuesday morning, part of a broader market rebound following steep losses on Monday. The Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, climbed 2.5%, while the SPDR S&P 500 ETF Trust (SPY) and the SPDR Dow Jones Industrial Average ETF (DIA) each gained over 2%.

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