According to Bloomberg, many Tesla investors are questioning the way Elon Musk is managing the EV maker. In the week between April 17 and 22, a group of 17 Tesla shareholders, who together own about $1.5 billion in company stock, voiced concerns over Elon Musk’s commitment to the company. Longtime investors are dissatisfied with the CEO’s leadership style and accuse him of being distracted and focused on his other businesses. In an open letter to the board of directors, investors called for Elon Musk to be reined in. They also seek to "overhaul the composition of the Board, including rolling off directors with close ties to the CEO." "It's unprecedented for a CEO to have the kind of outside business activities Elon Musk has and it's certainly hurting Tesla," said Courtney Wicks, executive director of Investor Advocates for Social Justice. Wicks believes that Musk’s outside ventures don’t allow him to properly focus on Tesla. Elon Musk runs several companies including Tesla, SpaceX, and Twitter. Apart from this, the billionaire is planning to launch an AI-based start-up to compete with ChatGPT. In addition to growing discontent with the CEO, Tesla has faced other issues. For instance, the automaker reported it failed to reach its delivery targets in 2022. In addition to this, the US Department of Justice, the National Highway Traffic Safety Administration, and the California Department of Motor Vehicles have launched an investigation regarding Tesla’s autopilot system. Against this backdrop, Tesla shares sank by 10.8% in early April. In the first quarter of 2023, Tesla posted record vehicle deliveries although sales growth was modest even despite price cuts.
