NEW YORK, Nov 21 – New York City Comptroller Brad Lander told Reuters on Tuesday that Tesla’s board should sanction CEO Elon Musk if he does not apologize for approving a anti-Semitic comment on his social media platform
Lander oversees approximately $946 million in Tesla stock for New York City’s public pension funds. This amount equates to a stake of approximately 0.1% in the electric vehicle maker. Mr. Lander’s remarks make him the latest Tesla shareholder to call on the electric vehicle maker to rein in Mr. Musk. Previously, small investors, including Nia Impact Capital and Ross Gerber, CEO of Gerber Kawasaki Wealth & Investment Management, had expressed concern about Mr. Musk’s action.
On November 15, Mr. Musk approved an anti-Semitic post on the social media platform X, formerly known as Twitter. This message falsely claimed that members of the Jewish community were fanning hatred against white people. Mr. Musk said the author of the message was telling “the truth.”
Mr. Lander said Tuesday that Mr. Musk’s action created problems for Tesla, citing a section of the automaker’s code of business ethics that prohibits bullying “at all levels of the organization.”
“There is a real risk that if he is perceived to be anti-Semitic, that could have real implications for Tesla’s sales and value,” Mr. Lander said.
It is not yet clear whether Tesla’s board of directors will take action. He has supported Mr. Musk through various controversies, from settling fraud charges with the U.S. Securities and Exchange Commission to the CEO’s time and resources devoted to other companies such as rocket maker SpaceX, brain chip startup Neuralink, tunnel contractor Boring Company and X. He also defended him when shareholders challenged his $56 billion compensation in court.
Tesla did not respond to questions about Mr. Lander’s comments on Tuesday.
Shares of Tesla, which has nearly doubled in value this year, were trading Tuesday at about the same level as before Mr. Musk endorsed the Nov. 15 anti-Semitic message.
Mr. Musk has since denied being anti-Semitic, and X’s chief executive, Linda Yaccarino, told employees that “the data will reveal the real story” of the company’s efforts to combat anti-Semitism.
Mr. Lander said Tesla’s board should make it clear to Mr. Musk that he needs to take action such as removing his post and apologizing. If Mr. Musk fails to do so, Tesla’s board should consider actions such as cutting his salary, suspending him or firing him, Mr. Lander added.
“The board needs to hold him accountable, but what we need most today is to show how people can grow and change,” Lander said.
Mr. Lander acknowledged that Mr. Musk’s contributions to Tesla’s success could make the board reluctant to take action against him. He wrote to Tesla Chairman Robyn Denholm on Monday saying failure to act would show Tesla’s code of business ethics is “toothless.”
He also cited the case of automotive icon Henry Ford, whose role in perpetuating anti-Semitism was recognized as a problem in September by the president of the Ford Foundation.
Mr. Musk’s endorsement of the anti-Semitic message was condemned by the White House, which accused Mr. Musk of “abhorrently promoting anti-Semitic and racist hatred,” which “goes against our core values in as Americans.
Mr. Musk is Tesla’s largest shareholder, with a 20.6% stake, according to the company’s latest proxy statement. Proxy advisors, who recommend investors vote at annual shareholder meetings, have criticized Tesla’s board on issues including its independence
Major corporate advertisers have fled X since Musk bought it in October 2022, following concerns from civil rights groups that reduced content moderation would lead to a sharp increase in hate speech.
Several others have left the site in recent days after a report from the liberal watchdog Media Matters for America said content promoting Nazism appeared alongside their ads. Mr. Musk denied these facts and sued Media Matters on Monday.
Mr. Musk also made several comments targeting the Anti-Defamation League, a nonprofit organization that fights anti-Semitism. Tesla and Musk are also defending themselves against allegations of racial or sexual discrimination or harassment against workers in actions brought by federal and state civil rights agencies.
In a public call with investors on Tuesday, Kristin Hull of Nia Impact Capital said Mr. Musk’s comments were “the first time investors have had to deal with a CEO who doesn’t seem to be looking for the best.” for its own brand […]. So we’re asking the board to step in and find a solution.”
Last week, Nia called on Tesla’s board to take action against Musk, such as “board censure, demotion, reassignment, suspension or termination.”
2023-11-21 21:14:11
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