The group claims that Musk's attention is divided among his various other ventures, hampering the company's governance.

In a letter to shareholders, the group expressed concerns about a "material governance failure" at Tesla, stating that urgent attention and action are required. Brad Lander, New York City Comptroller and one of the signatories of the letter, joined Market Domination to discuss their move, emphasizing the need for independent board governance.

Lander deemed Musk's proposed pay package "stratospheric" but highlighted that the larger issue lies in the lack of independent board governance. The New York City Comptroller pointed out that shareholders have not had a meaningful say in executive compensation, and criticized Tesla for operating more like a family-owned business.

Expressing concerns over Musk's potential distractions, such as his involvement with SpaceX and other projects, Lander stressed the importance of having a CEO solely focused on Tesla's growth, expanding electric vehicles, and generating profits for shareholders.

The group of shareholders is challenging Musk's statement that he may reduce his involvement in Tesla if the pay package is not approved. Lander argued for the need to prioritize a CEO dedicated to Tesla's success and urged the board to ensure this focus.

When asked about the odds of their success, Lander acknowledged the challenges, considering a significant portion of Tesla's stock is held by non-independent shareholders. Nevertheless, he emphasized the importance of shareholders raising their voices for independent governance, highlighting that it is rare for a court to invalidate a corporate board's independence.

Lander, who oversees New York's pension funds holding about 3.4 million shares in Tesla, clarified that their efforts extend beyond just writing a letter. They are actively seeking to lead a shareholder vote against the $56 billion pay package, which has already been overturned by a court.

While Lander did not disclose any specific companies they have their eyes on, he mentioned recent engagements with Exxon and BlackRock. The New York City Comptroller emphasized the significance of shareholder engagement in driving progress and achieving positive outcomes, pointing to previous successes with JP Morgan Chase, Citi, and Royal Bank of Canada in transitioning towards clean energy financing.

As the vote on Musk's pay package approaches, shareholders are rallying together in an attempt to ensure an independent and focused CEO for Tesla, with the hope of positively influencing the company's direction and future success.