Leaked Letter Shows Tesla Is Facing Pressure From Group of Investors

Tesla is facing pressure from a group of investors

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Tesla is under pressure from a group of long-term investors holding over $1.5 billion in shares. These investors have voiced concerns over the company's governance and leadership and human rights issues within its operations and supply chain. They have called for changes in the composition of the Board of Directors, greater focus from CEO Elon Musk, and increased transparency in the company's practices.

Long-term Investors Voice Concerns

In a letter obtained by Teslarati and addressed to Tesla's Board of Directors, the investors expressed their worries about the Board's meager oversight of CEO Elon Musk and other critical aspects of corporate strategy. They believe this lack of oversight exposes the company to substantial legal, operational, and reputational risks, jeopardizing its long-term value. The investors are particularly concerned that Musk's multiple outside commitments, including his roles in SpaceX, The Boring Company, Neuralink, and as owner and CEO of Twitter, Inc., may distract him from addressing the strategic and competitive challenges facing Tesla.

Moreover, investors have pointed out that Tesla's stock has suffered since Musk's involvement in Twitter, with the company losing $582.4 billion in market capitalization within a year. As competition in the EV market intensifies with legacy automakers launching comparable models, they argue that Tesla's shareholders need their CEO to be exclusively focused on resolving the company's issues.

Calls for Changes in Board Composition, CEO Focus, and Increased Transparency

The long-term investors have urged Tesla's Board to announce a plan to ensure that the company has a CEO who dedicates enough time and attention to the company. They propose limiting the CEO's outside commitments or implementing a succession plan. Furthermore, they request an overhaul of the Board's composition, including removing directors with close ties to Musk. The investors believe that the current governance structure, board composition, and director compensation practices contribute to poor oversight and prioritize personal relationships over the needs of Tesla and its shareholders.

Workplace Issues and Human Rights Risks Draw Attention

The investors also highlighted a series of lawsuits, complaints, and allegations involving workplace equity, safety, and human rights violations within Tesla and its supply chain. These issues include racial discrimination, sexual harassment, unsafe working conditions, wage theft, and retaliatory termination. They noted that Tesla workers are bound by mandatory arbitration and non-disclosure agreements, which could potentially obscure the full scope of harassment and discrimination claims raised by employees.

Additionally, the letter pointed out Tesla's sourcing practices that expose the company to significant human rights risks, such as using cobalt from the Democratic Republic of the Congo, where child labor is pervasive, and potential connections to forced labor in China's Xinjiang Uygur Autonomous Region (XUAR). The investors emphasized the growing momentum in the US to enforce import bans on goods produced with forced labor and the increasing public attention on child labor and forced labor in supply chains.

Lastly, the investors call for increased transparency in the company's human capital management practices, workplace conditions, and human rights policies better to assess the company's risks and overall performance.

In light of these concerns, the investors have requested a meeting with the Board by May 25, 2023, to discuss their concerns and proposed remedies. As Tesla faces increased competition and scrutiny, addressing these issues will be crucial to maintaining its position as a leader in the EV market and ensuring the company's long-term success. The outcome of this meeting, and the letter itself, and the Board's response to the investors' demands may significantly impact Tesla's future and its relationship with shareholders.

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Tesla FSD in Europe: June Update

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The road to bringing FSD to Europe has been a long and complex one and filled with regulatory and bureaucratic hurdles. Elon Musk, as well as other members of Tesla’s AI team, have previously voiced their grievances with the regulatory approval process on X.

However, it appears that there is finally some progress in getting things moving with recent changes to upcoming autonomy regulations, but the process still seems slow.

Waiting on the Dutch

Elon commented on X recently, stating that Tesla is waiting for approval from Dutch authorities and then the EU to start rolling out FSD in Europe. Tesla is focusing on acquiring approvals from the Dutch transportation authority, which will provide them with the platform they need to gain broader acceptance in Europe. Outside of the Netherlands, Tesla is also conducting testing in Norway, which provides a couple of avenues for them to obtain national-level approval.

The frustration has been ongoing, with multiple committee meetings bringing up autonomy regulation but always pulling back at the last second before approving anything. The last meeting on Regulation 157, which governs Automated Lane Keeping Systems, concluded with authorities from the UK and Spain requesting additional time to analyze the data before reaching a conclusion.

Tesla, as well as Elon, have motioned several times for owners to reach out to their elected representatives to move the process forward, as it seems that Tesla’s own efforts are being stymied. 

This can seem odd, especially since Tesla has previously demoed FSD working exceptionally smoothly on European roads - and just did it again in Rome when they shared the video below on X.

FSD Supervised testing in Rome, Italy

Pending regulatory approval pic.twitter.com/TXh3uQIfrx

— Tesla Europe & Middle East (@teslaeurope) June 12, 2025

DCAS Phase 3

While the approval process has been slow, Kees Roelandschap pointed out that there may be a different regulatory step that could allow FSD to gain a foothold in Europe.

According to Kees, the European Commission is now taking a new approach to approving ADAS systems under the new DCAS Phase 3 regulations. The Commission is now seeking data from systems currently operational in the United States that can perform System-Initiated Maneuvers and don’t require hands-on intervention for every request.

This is key because those are two of the core functionalities that make FSD so usable, and it also means that there may not be a need to wait years for proper regulations to be written from scratch. Now, the Commission will be looking at real-world data based on existing, deployed technology, which could speed up the process immensely.

What This Means

This new, data-driven regulatory approach could be the path for Tesla to reach its previous target of September for European FSD. While the cogs of bureaucracy are ever slow, sometimes all it takes is a little data to have them turn a bit faster in this case.

Alongside specific countries granting approval for limited field testing with employees, there is some light at the end of the tunnel for FSD in Europe, and hopes are that a release will occur by the end of 2025. With Europe now looking to North America for how FSD is performing, Tesla’s Robotaxi results could also play a role.

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Tesla Launches 'TeslaVision' Contest With Big Prizes — See Last Year’s Winner [VIDEO]

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Tesla’s marketing has always been relatively unconventional, relying on word-of-mouth rather than traditional advertising. The passion of the owner’s community is always massive, but it is especially high now with the launch of the Robotaxi network just around the corner.

Tesla is now tapping into that spring of fan creativity and announced the TeslaVision video contest, with some seriously impressive prizes up for grabs.

Announcing the TeslaVision fan video showcase

Tesla owners & supporters have always been able to see our products & mission for what they truly are.

Your word of mouth has made Tesla what it is today.

The OGs will remember that in 2017, we held our first video contest. 8 years… pic.twitter.com/6pPpkqmqOH

— Tesla (@Tesla) June 10, 2025

The Contest

The core of the contest is simple. Create a video that shows how your Tesla gives you more in life. Tesla is looking for submissions that highlight themes of freedom, safety, fun, and convenience.

Prizes

The prizes definitely make this contest worth entering if you’re good with a camera and have some basic video editing abilities.

For North America, the prizes include a brand new Model Y AWD Long Range, alongside an all-expenses-paid trip to Austin for a tour of Giga Texas. The grand prize winner will also be able to custom order their Model Y, allowing them to select their preferred wheels and color.

The two runners-up won’t get a Model Y, but they’ll also enjoy an all-expenses-paid trip to Giga Texas for a tour of the factory.

The travel and tour include lodging in Austin for 2 nights, as well as economy-class round-trip tickets from anywhere in North America. Tesla will also provide a vehicle for use during the trip.

Hopefully, these winners will also have the opportunity to experience the Robotaxi network while they’re in Austin, as it’s expected to be opened to the public later this month.

Project Loveday

For long-time followers of Tesla, this contest may feel familiar. The contest is a direct throwback to the 2017 Project Loveday contest, which was inspired by a letter to Tesla from a 10-year-old aspiring marketer. That contest was won by MKBHD, with his submission below:

How to Enter

If you’re ready to start filming, here are the key pieces of information you’ll need to know:

• Video must be 90 seconds or less

• Video must be uploaded to YouTube with a public URL

• Make a post on X and Instagram tagging “@Tesla” and include the words “TeslaVision contest” in the post.

• Provide links to both social media posts in your submission to Tesla’s form

• Provide your personal details in the form

• You have until July 17th, 2025, or until Tesla receives 10,000 entries, whichever comes first.

You can find the official submission form and all region-specific details on Tesla's website.

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