Core Viewpoint - A group of major Tesla shareholders is urging CEO Elon Musk to refocus on the company due to declining sales, reputational damage, and his increasing external commitments [1][4][9]. Group 1: Shareholder Concerns - Investors are demanding that Musk commit at least 40 hours per week to Tesla and implement new governance policies to limit external commitments of directors [2][4]. - The letter highlights serious concerns regarding Tesla's stock price volatility, declining sales, and negative reports about the company's human rights practices [4][9]. - Shareholders controlling 7.9 million Tesla shares signed the letter, criticizing the board for not acting in the best interest of all shareholders [9]. Group 2: Sales and Market Performance - Tesla's sales have significantly declined, with European deliveries in April down nearly 50% year-over-year, and first-quarter global EV sales also showing a year-over-year decline [7]. - The company's stock has fallen 12% in 2024, underperforming the Nasdaq, which is down about 1% during the same period [7]. Group 3: Reputational Issues - Tesla's public image has deteriorated, dropping from a top 10 admired US brand to 95th in the Axios Harris Poll, trailing behind six other automakers [8]. - The decline in reputation is partly attributed to Musk's political activities, including a nearly $300 million donation to pro-Trump efforts and a controversial endorsement of Germany's far-right AfD party [8]. Group 4: Governance and Board Independence - Investors are calling for a formal CEO succession plan and the addition of at least one independent board member with no ties to Musk or his allies [2][9]. - Concerns have been raised about the independence of the board following the announcement of Jack Hartung, a new board member who previously worked with Musk's brother [11][12].