Financial officials from eight U.S. states have expressed concerns to Tesla's (TSLA, Financial) board about the company's current direction and CEO Elon Musk's focus on its challenges. Officials from California, Illinois, and six other states cited worries over Tesla's declining stock price, lower-than-expected first-quarter delivery figures, and the increasing number of owners switching to other brands.
The officials highlighted Musk's involvement in multiple companies and his role as a federal advisor, questioning whether Tesla's leadership is fully addressing the company's core issues. This letter, drafted in collaboration with Americans for Responsible Growth, adds to the public pressure Tesla and Musk are facing. Tesla is set to release its first-quarter earnings report soon.
Officials, including California's Malia Cohen and Illinois's Michael Frerichs, warned that Tesla's poor performance could impact regional economies and undermine public confidence in energy transition. Despite Tesla's headquarters move to Austin, California remains a key manufacturing and engineering hub for the company. States like Washington, Massachusetts, Colorado, and Connecticut, which have adopted California's electric vehicle sales standards, also signed the letter.
The officials urged the board to clarify how they will ensure Musk and his team dedicate sufficient time to address performance issues. They also questioned executive compensation policies and measures to restore investor confidence.
