A group of 17 investors, including Sweden’s AP7 and Denmark’s PensionDanmark, have written to Tesla’s board to call for a review of the company’s corporate governance.

The investors own shares in Tesla worth more than USD 1.5bn in total.

In the letter, the investor group stated that it believed that the board showed signs of not representing the shareholders’ interests to a “sufficiently high extent”.

“The board's lack of oversight of CEO Elon Musk and other critical aspects of corporate strategy, including the company's approach to human and labour rights, exposes the company to significant legal, operational and reputational risks, jeopardising its long-term value,” the letter said.

The investors also questioned that the board has allowed Musk to be involved in several other commitments and ventures, including CEO of Twitter and SpaceX.

They argued that these other commitments limit his capacity to manage strategic issues at a time when Tesla is facing “critical challenges and increased competition”.

Based on this, the investor group has requested a meeting with the board by 25 May 2023.

In the meeting, the investor group wants to discuss a way to ensure that Tesla has a CEO who devotes sufficient time and attention to the company.

Furthermore, it wants to discuss a plan to review the composition of the board, especially board members with “close personal connections” to the CEO.

Other members of the investor group include NEI Investments, Nordea Asset Management and SOC Investment Group.

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