Eight Democratic state treasurers on Tuesday pressed the chair of Tesla’s board about the company’s faltering performance, raising questions about whether Elon Musk is devoting enough time to his electric vehicle firm amid his work in the Trump administration.
In a letter to Tesla Chair Robyn Denholm, the treasurers voiced concerns that the company’s recent difficulties indicate “deeper governance and leadership challenges” that could ultimately impact their states.
“CEO Elon Musk continues to divide his attention across multiple companies and a high-profile advisory role within the federal government,” they wrote. “These external commitments raise serious questions about whether Tesla’s leadership is fully engaged in addressing the company’s core challenges.”
The added, “If Tesla falters, the effects won’t be confined to shareholders—they will ripple through regional economies, workforce pipelines, and public confidence in the energy transition.”
Tesla has suffered steep losses in recent months, with its stock tumbling 37 percent since the beginning of the year and nearly 50 percent since December. The company has lost more than $600 billion in market value.
While other tech giants have similarly faced headwinds as a result of President Trump’s trade war with China and waning enthusiasm for artificial intelligence, Tesla has been hit particularly hard by Musk’s involvement in the administration.
Musk has led the Department of Government Efficiency’s (DOGE) push to cut trillions of dollars in government spending, which has included slashing tens of thousands of federal workers.
Amid growing pushback to DOGE, Tesla has become a focal point for frustration with Musk. In addition to peaceful protests, some Tesla cars, dealerships and charging stations have dealt with violent demonstrations, including vandalism, arson attacks and shootings.
As the brand has become more politicized, liberals have increasingly sought to distance themselves from Tesla, in some cases even ditching Musk’s vehicles. Despite efforts by Trump and his close allies to drum up enthusiasm for Tesla, it remains to be seen whether EV-skeptical conservatives will embrace the company.
“We are hearing increasing concern about Tesla’s direction, not only from financial professionals but from those who have looked to Tesla as a leader in clean energy innovation and American industrial renewal,” the state treasurers said.
The top financial officials from Washington, Massachusetts, Illinois, Connecticut, New Mexico, Colorado, Vermont and California asked Tesla’s board for clarification on how it is ensuring Musk is dedicating sufficient time to the company, as well as how it is evaluating executive compensation.
Back in 2018, Tesla shareholders approved a massive pay package for Musk based on a series of milestones that the company later went on to meet. The multibillion-dollar package has since been struck down twice by a Delaware court. Musk appealed the decision in March.
