The letter blames Musk’s “outside endeavors” in President Trump’s DOGE unit as a “special government employee” for Tesla’s long-term problems, while also pointing fingers at a board “that appears largely uninterested and unwilling to act in the best interest of all Tesla shareholders by demanding Mr. Musk’s full-time attention on Tesla.”

Musk also leads social media platform X and space technology company SpaceX. However, he confirmed on Wednesday that he is departing from the Trump administration, though he will remain as one of President Trump’s most influential outside advisors.

The American Federation of Teachers, as well as LD Pensions, AP Pensions, Friends Fiduciary Corporation, New York City Comptroller Brad Lander, State Treasurers of Oregon and Illinois and more, sent the letter to Robyn Denholm, Chairperson of the Board, Tesla, stating that “damage to Tesla’s brand is evidenced by the company’s stock price falling by more than 24% since its peak in December 2024, its Q1 sales falling 13% this year versus the same period a year ago.”

Related: American Federation of Teachers urges fiduciaries to examine Tesla investments ‘at risk’ in pensions

Given the steep plunge in Tesla shares this year due to extreme pushback from Musk’s role in the Trump administration – and the destruction of Tesla vehicles nationwide – Weingarten had requested that state treasurers and comptrollers ask asset managers to assess their Tesla holdings. “Consequently, Tesla’s sales numbers for Q1 2025 are shaping up to be abysmal,” she said.

In March, a group of 51 New York State legislators called on the state to divest its $1 billion in Tesla holdings. In April, eight state treasurers penned a joint letter to Tesla's board to express concern over Musk's lack of focus on Tesla.

Earlier this month, the Lehigh County Pension Board in Pennsylvania, which oversees the Board’s $500 million Retirement Fund, passed a resolution to end the purchase of shares of Tesla and sought to completely divest its holdings, becoming the first known U.S. pension fund to divest from Tesla. The Lehigh County board did not sell off existing Tesla holdings, but have asked for a full report on the financial, reputational, and governance risks tied to the company. Until then, they’ve halted any new investment in Tesla.

In the new letter sent to Tesla this week, pension fund leaders are “demanding Mr. Musk’s full time attention on Tesla,” as well as a “succession plan” for “unplanned or ‘emergency departures,’ with a two-to-five-year time frame to begin searches for planned departures.”