Musk asked to commit 40 hours a week to Tesla

According to the investors, the company’s current disclosure regarding the CEO succession plan does not give assurance that the board is adequately prepared to bring on a new individual to execute Tesla’s business plans.

“The Board should adopt and disclose a succession plan that includes the goals of the plan, strategies on internal candidate development and the development of a talent pipeline, as well as the criteria for when an outside search firm should be engaged,” they said.

Addressing Tesla’s leadership

The investors issued the demands as they pointed out the need for reforms to address the company’s leadership amid challenges faced by the company.

“Tesla’s stock price volatility, declining sales, as well as disconcerting reports regarding the company’s human rights practices, and a plummeting global reputation are cause for serious concern,” they said.

“The current crisis at Tesla puts into sharp focus the long-term problems at the company stemming from the CEO’s absence, which is amplified by a Board that appears largely uninterested and unwilling to act in the best interest of all Tesla shareholders by demanding Mr. Musk’s full-time attention on Tesla.”