Tesla can deal with a NYC Pension Funds trial on Musk leadership

The New York retirement funds called for legal action against Tesla, accusing Elon Musk, his chief executive officer, of having dropped the actions of the company because of his actions to reduce expenses and the federal work force as head of the Trump administration’s cost effort.

In a letter sent late Monday to the New York Law Department and revised by the New York Times, Brad Lander, the controller who oversees the five public pension funds of the city, said that the highly contested cost reduction measures of Mr. Musk’s initiative, the Ministry of Government’s efficiency, harm Tesla’s shares.

He accused Mr. Musk, the richest person in the world, of “leaving his job effectively at Tesla” and of “promoting politicians” which was harmful to Tesla’s affairs.

“While the market learned the truth, little by little, that Musk in fact abandoned Tesla in favor of Doge, where he took measures which alienated the base of consumers of Tesla and reducing the sales of Tesla, the course of the action fell in response,” Lander wrote in a letter to Muriel Goode-Trufant, the New York business advice. The letter was considered a probable precursor to a trial because Ms. Good-Trufant is the lawyer for the pension funds.

Consequently, according to the letter, the value of the Tesla holdings of the pension system dropped from 34% from December 31 to March 31 to 831 million dollars, compared to $ 1.26 billion.

Mr. Lander, in an interview, said that Tesla had stressed the importance of Mr. Musk’s involvement for the success of the electric car manufacturer, but had falsely represented that he spends “an important time for the company and is very active” in his management. He said he hoped that the trial would help recover some of the losses and oblige Tesla to bring changes in policy and governance.