### Shareholders and Pension Funds Push Tesla Board for Better Governance Amid Musk Controversies

Tesla CEO Elon Musk recently appeared at the White House with President Donald Trump, marking the end of his contentious tenure leading the federal job-cutting DOGE initiative. Despite the literal bruise on his right eye, attributed to his toddler son X, the metaphorical bruises on his and Tesla's reputation from Musk's political involvement are proving more enduring. Prominent shareholders and unions, notably the American Federation of Teachers (AFT), are placing the blame squarely on Tesla's board, urging it to enforce better governance.

Randi Weingarten, President of the AFT, whose 1.8 million members are part of pension funds holding $8.8 billion in Tesla shares, criticized Musk's extracurricular activities distracting from his CEO responsibilities. Weingarten emphasized that Tesla’s potential failure would significantly impact retirees' portfolios, stressing that either Musk should fully commit to his role at Tesla or the board should appoint a new CEO.

Nine state treasurers and comptrollers echoed these concerns in an April letter to Tesla Chair Robyn Denholm, highlighting risks to local economies from poor governance at Tesla. Illinois Treasurer Michael Frerichs remarked that no other public company CEO would be permitted such neglect of duties, questioning the leniency afforded to Musk.

CalPERS, the largest U.S. pension fund with 9.4 million Tesla shares valued at $3.2 billion, has not yet indicated whether it will join the AFT and other state officials in pushing for Tesla board reforms. Meanwhile, Musk's multiple leadership roles in other ventures, alongside his more damaging association with the Trump administration, have sparked protests and vandalism targeting Tesla.

Recent surveys underscore the damage to Musk’s and Tesla’s reputations, with a GBAO poll revealing a 55% unfavorable view of Musk and identifying Tesla as the least favored brand among prospective electric vehicle buyers. Importantly, 51% of respondents said they’d view Tesla more positively if Musk were replaced as CEO.

In the wake of stepping back from his DOGE duties, Tesla stock surged over 50% since April 21, as investors anticipated a more focused effort from Musk, especially with the upcoming pilot robotaxi program in Austin. However, GBAO Principal Margie Omero remains skeptical about the lasting impact of Musk’s recent steps, noting his continued influence and longstanding divisive actions.

Musk’s controversial antics have included false statements about taking Tesla private, slurs during a defamation case, public health tirades, and politically charged, polarizing behavior. Reports of drug use further complicate his public image.

Despite calls for better governance, Tesla’s board has yet to respond to concerned shareholders. Weingarten hinted at potential legal action, emphasizing the urgency for the board to fulfill its responsibilities to protect and improve Tesla’s brand and operations.