Tesla(TSLA) CNBC·2025-05-28 21:57Core Viewpoint - Tesla is facing a crisis, prompting pension fund leaders to urge Elon Musk to dedicate more time to the company, citing concerns over stock volatility, declining sales, and human rights practices [1][2]. Group 1: Investor Concerns - Investors expressed serious concerns about Tesla's stock price volatility, declining sales, and negative reports regarding human rights practices, which have contributed to a plummeting global reputation [2]. - The investors are advocating for a minimum of 40 hours per week of work from Musk at Tesla as a condition for any new compensation plan, alongside a clear succession plan for management and limitations on outside board commitments for Tesla directors [2][6]. - The group of investors collectively owns approximately 7.9 million shares in Tesla and criticized the board for not acting in the best interest of all shareholders [6]. Group 2: Financial Performance - Tesla's stock price has decreased by 12% this year, contrasting with a mere 1% decline in the Nasdaq index [5]. - Monthly sales in Europe for Tesla fell by nearly 50% in April compared to the same month last year, continuing a trend of significant declines observed in the first quarter [5]. Group 3: Brand Reputation - Tesla's brand value has significantly declined since 2024, dropping from 8th to 95th in the Axios Harris Poll of public perceptions of U.S. companies, now ranking behind six other automakers [4][5]. - The decline in reputation is attributed to Musk's controversial rhetoric and political activities, including substantial financial support for political campaigns [4]. Group 4: Board Composition - Investors have requested the addition of at least one new independent director with no personal ties to existing board members, highlighting concerns over board independence [8]. - Tesla recently announced the appointment of former Chipotle CFO Jack Hartung to its board, although he has prior connections to Musk's brother, Kimbal Musk [8].