As Tesla’s board faces criticism for inadequate oversight of CEO Elon Musk, treasurers from eight U.S. states have issued a warning letter to the company’s directors.
On Tuesday, electric vehicle news outlet Electrek reported that treasurers from eight states questioned Musk by addressing Tesla’s challenges in an open letter to the company. The joint letter, signed by treasurers from states including California and Illinois, highlighted concerns such as Tesla’s declining stock price, reduced vehicle deliveries in Q1, and a significant uptick in vehicle buybacks.
The state officials noted that despite the board’s duty to oversee management and safeguard shareholder interests, Tesla’s stock has plummeted 44% this year. Meanwhile, Musk appears increasingly focused on his other ventures and government projects.
The board has also come under fire for maintaining Musk’s complete authority even after being compelled to return 1 billion USD in compensation following a shareholder lawsuit.
In light of these issues, the treasurers demanded answers regarding Musk’s commitment to Tesla, the alignment of CEO compensation with shareholder value, and strategies to rebuild investor trust.
