State pension funds across the country hold millions of shares of Tesla stock valued at tens of billions of dollars. Over the past year, Tesla’s CEO Elon Musk has devoted significant time and energy to political crusades and other business. This has included endorsing and contributing millions of dollars to help elect President Trump, amplifying online conspiracy theories, embracing far-right political parties across the globe, and leading the Department of Government Efficiency (DOGE) as it eliminated thousands of jobs and billions of dollars of spending at critical federal agencies.

Whether or not you agree with Musk’s political activities, there is no doubt that they have both distracted him from his leadership at Tesla and badly damaged the company’s brand [A]. In September Reuters reported that Tesla’s share of the EV market dropped to its lowest point [B] since 2017.

Yet Tesla’s Board of Directors has done nothing to hold Musk accountable. On the contrary the Board awarded Musk with an “interim” pay package worth roughly $30 billion and now is asking shareholders to vote on a new pay package that could be worth an unprecedented $1 trillion.

This plan isn’t just unprecedented, it’s unnecessary, unreasonable, and outrageous. It requires the dilution of current Tesla shareholders’ stake in the company. Nor is such a generous plan needed for Musk to be incentivized to increase Tesla’s value – he holds over 13% of shares in the company worth over $100 billion at today’s share price, so his fortune is already inextricably linked to Tesla’s value.

If our state pension funds hold shares in Tesla, that gives them a voice at Tesla’s upcoming Annual General Meeting. As a State Financial Officer who has a role in overseeing the investment of our state employee pension funds and potentially other assets, I am urging you to call for accountability at Tesla. Specifically I urge you to:

Speak out against excessive CEO compensation. Demand that any proposed pay package for Musk be reasonable and rationally benchmarked to the compensation of CEOs at other similarly sized companies and that any compensation for Musk be tied to an expectation of full-time engagement as Tesla’s CEO.
Oppose the election of any Tesla’s Board of Directors who do not demonstrate appropriate independence from the CEO and adherence to corporate governance best practices.

I believe both of these actions are completely consistent with your fiduciary responsibilities. The retirement security of our workforce hinges on responsibly investing employees’ deferred wages. Companies we invest in should be led by executives who exercise good judgement and put the company, its workers, and its shareholders ahead of their personal political agendas.

Sources:
A. https://www.reuters.com/business/autos-transportation/teslas-brand-loyalty-collapsed-after-musk-backed-trump-data-shows-2025-08-04/
B. https://www.reuters.com/business/autos-transportation/tesla-market-share-us-drops-lowest-since-2017-competition-heats-up-2025-09-08/

Email your State Financial Officer

Email your State Financial Officer