Taking away Musk's role as chairman isn't enough for them.
Tesla CEO and soon-to-be former chairman Elon Musk is a controversial figure. Whether it’s getting high on Joe Rogan’s podcast or writing a now-infamous tweet that personally cost him $20 million, Musk may be a brilliant visionary but his judgment can sometimes be, shall we say, clouded. And this is exactly what concerns a group of Tesla investors.
According to Bloomberg, these investors want the California-based electric car company to go beyond the Security and Exchange Commission’s settlement with Musk and Tesla, which will see the removal of Musk as chairman and an additional $20 million fine, this time from Tesla.
Basically, these investors, who consist of a “union-affiliated group and officials representing major pension funds in five states,” are demanding additional changes they claim are long overdue. As of this writing, Tesla had no comment, but its shares are up about 8.3 percent so far this year.
Because Tesla has just made a profit and Model 3 production appears to be sorted, the investors’ demands may still not be adopted. They claim that since they help oversee roughly $774 billion in combined assets, they’re influence and voices ought to be heard. What do they want? The creation and release of a plan to refresh the Tesla board and even for set timelines for some directors’ departures. Another demand is a personal strike at Musk.
They also want the board to permanently separate the chairman and CEO jobs. Remember, the SEC settlement only said Musk can’t hold both positions at the same time for another three years. He could simply return to the roll after that time has elapsed.
These investors have for years been concerned over Musk’s personal and professional ties to Tesla’s board, and it sounds like they simply don’t trust the guy anymore. In fact, it doesn’t sound like they trust the Musk family in general. Kimbal Musk, Elon’s brother, is one of the board members these investors want a firm departure date for. They also want the ability to nominate their own list of directors and for greater board diversity.
Above all, they want board members with the right experience. There’s no guarantee whether these particular investor groups will get their way in the end, but what’s for certain is the growing mistrust and questioning of Elon Musk who, to them, is the immature adult in the room.