The Cracks in Elon Musk’s Work Ethic Myth

Elon Musk is famed for his relentless work ethic, often portrayed as a workaholic who sleeps in his office while juggling multiple companies. However, recent developments have thrown this image into question, as Tesla's Board of Directors has expressed concerns about Musk's commitment, demanding he clock at least 40 hours a week at the helm of Tesla.

Musk's Multitasking Dilemma

As Musk expands his empire, with increased involvement in ventures like X (formerly Twitter), SpaceX, Neuralink, and xAI, stakeholders are beginning to worry about Tesla's future. The American Federation of Teachers, a significant shareholder with nearly 8 million shares, has voiced concerns over Musk's shifting priorities.

Their letter highlights the dwindling focus on Tesla, particularly during a tumultuous financial period for the company. Investors fear that Musk's divided attention could jeopardize the automaker's stability.

Demands for Commitment and Strategy

The investors are not pushing for Musk's departure. Instead, they are insisting on a commitment to a minimum of 40 hours dedicated to Tesla each week. They proposed a flexible schedule, allowing him to allocate these hours over three days, freeing up two days for other projects.

As SAS Investment Group's Tejal Patel put it, their goal is simple: "We want to ensure that he devotes sufficient time to overseeing the company effectively." There's also a pressing demand for a clear succession plan, ensuring Tesla's leadership remains stable in case of Musk's absence.

Calls for Governance Reform

The critique doesn't stop with Musk; investors are also questioning the management team's dynamics, which they perceive as overly accommodating to the CEO. They advocate for adding at least one independent board member with no connections to Musk or his family.

One specific concern involves Jack Hartung, a recent appointee and former Chipotle executive, who is linked to Musk’s brother, Kimbal. Shareholders fear that such ties may lead to nepotism, affecting crucial decisions, particularly regarding executive compensation.

A Shift in Expectations for Tesla

The investor letter underscores a growing frustration among Tesla shareholders, highlighting a stark discrepancy: while Musk has historically pushed for 80 to 100-hour work weeks from his employees, he now seems unable to commit even 40 hours to Tesla. As the visionary automaker navigates a challenging landscape, shareholders are demanding stronger leadership and accountability. Tesla must evolve beyond merely being one of Musk's many ventures and instead thrive under dedicated management.