Hyperdrive

Activist Firm Slams Tesla, Urges Major Board Shakeup

  • CtW opens campaign against the re-election of three directors
  • Investor criticizes board members’ Musk ties, track records
Analyst Pierre Ferragu discusses the key questions that Tesla needs to answer. Source: Bloomberg
Lock
This article is for subscribers only.

An activist firm representing Tesla Inc. shareholders has excoriated the electric-car maker, claiming that it’s veered off the path to profit and urging a major overhaul of the Elon Musk-led board.

CtW Investment Group, working with union pension funds that are Tesla investors managing more than $250 billion, opposes the re-election of three board members who are up for votes during Tesla’s June 5 annual meeting. The firm calls for shareholders to cast ballots against Antonio Gracias, a private-equity investor and Tesla’s lead independent director; Kimbal Musk, Elon’s brother; and James Murdoch, CEO of Twenty-First Century Fox Inc.