State treasurers urge Tesla’s board to increase oversight on Elon Musk

Seven state treasurers have issued a formal letter to Robyn Denholm, chair of Tesla’s board, expressing concerns over the performance of the company and calling for greater oversight of CEO Elon Musk.

This development highlights mounting pressure on the board amidst a troubling decline in Tesla’s stock, which has plummeted nearly 40% this year, including a staggering 36% drop just in the first quarter of 2025.

The treasurers argue that Tesla’s underperformance not only jeopardizes shareholder value but could have broader implications for regional economies and industries tied to clean energy and innovation.

Tesla’s Board Under Pressure: Will They Act on Warnings from State Treasurers?

The letter emphasizes that recent challenges — including the company’s failure to meet delivery targets and significant vehicle recalls — raise serious governance issues.

With Musk dividing his attention across six different companies, along with a prominent advisory role in the federal government, questions are emerging about his commitment to addressing Tesla’s core challenges.

The treasurers noted, “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”.

This communication serves as a wake-up call for Tesla’s board, which has been criticized for being overly passive and seemingly under Musk’s control. The letter underscores the board’s responsibility to uphold fiduciary standards and ensure that the company’s leadership aligns with long-term interests.

The treasurers urged the board to provide transparency regarding its oversight role and the company’s strategic direction moving forward.

The situation is particularly concerning given Tesla’s standing as a major player in the clean energy sector. As financial and public stakeholder confidence wanes, the board faces critical questions about its governance efficacy. Will Tesla’s board heed these warnings, or will they continue to operate under Musk’s predominant influence? Only time will tell.