Investment adviser Brad Lander of New York's pension funds to Tesla shareholders: You don’t have a full-time CEO and how this means loss of millions

New York City Comptroller Brad Lander, who advises the city’s five pension funds, has accused Tesla Inc of misleading shareholders about CEO Elon Musk’s commitment to the company. According to Bloomberg, Lander claimed that Tesla misrepresented Musk’s involvement, asserting that he is devoting significant time to Tesla despite his role leading President Donald Trump’s Department of Government Efficiency (DOGE), which focuses on reducing federal spending.
Lander highlighted the impact of Musk’s divided attention, noting that Tesla’s stock has dropped nearly 40% since Musk took the helm at DOGE, resulting in over $300 million in losses for New York City’s $285 billion pension funds in less than three months. “Tesla shareholders don’t have a full-time CEO paying attention to the company and their interests,” Lander stated during a news conference, as quoted by Bloomberg. Lander, one of about a dozen Democrats vying for New York City mayor, argued that Musk’s focus on DOGE has hurt Tesla’s performance and alienated customers, contributing to a steep decline in sales.

Tesla, however, has maintained a different narrative. In a December 2024 SEC filing cited by Bloomberg, the company described itself as “highly dependent on the services of Elon Musk,” emphasizing that he spends “significant time with Tesla.” Lander challenged this, accusing Musk of prioritizing DOGE over Tesla’s needs.
In response, Lander urged the New York City Law Department, which represents the pension funds legally, to support a shareholder lawsuit against Tesla. Lander has sent a letter to Muriel Goode-Trufant, the city’s managing attorney, via a public records request. In it, Lander reportedly wrote, “Given the New York City pension systems’ longstanding expression of concerns about corporate governance and the need for a full-time CEO, and Tesla’s misrepresentations regarding Musk’s role at DOGE, we are well-placed to commence and lead this potential litigation.”

This isn’t the first time New York City’s pension funds have targeted Tesla’s governance. At Tesla’s 2024 annual meeting, the city’s pensions, alongside seven other investors, pushed shareholders to reject Musk’s $47 billion compensation package and oppose the reelection of Musk’s brother Kimbal Musk and James Murdoch to the board. “Even as Tesla’s performance is floundering, the board has yet to ensure that Tesla has a full-time CEO who is adequately focused on the long-term sustainable success of our company,” Lander wrote in an SEC filing at the time.
If the Law Department moves forward with litigation, the pension funds could pursue financial damages and governance reforms, outcomes Lander views as preferable to divestment, which would cement the funds’ losses. Tesla has faced multiple shareholder lawsuits recently, ranging from challenges to Musk’s compensation and his 2022 Twitter acquisition to issues like fatal Autopilot-related crashes and allegations of workplace racism.