Elon Musk’s pledge to step back from his role in DOGE and refocus on Tesla has failed to alleviate the concerns of stakeholders and state officials regarding the electric vehicle maker’s performance and future prospects. On Tuesday, Musk announced that his role at the White House DOGE office would become secondary, allowing him to dedicate more time to leading Tesla. Despite this promise, the company’s first-quarter earnings report showed a 9% drop in total revenue compared to the same period last year, leading to a significant 41% decline in Tesla’s stock price from its peak in January. Several state treasurers and institutional shareholders have voiced their disapproval of Musk’s leadership, emphasizing the long-term damage his distracted management has inflicted on Tesla. Michael Frerichs, the treasurer for the state of Illinois, stated in a press release that the company’s poor financial results are "proof that his lack of focus has indeed hurt the company and permanently damaged the brand value of Tesla." Frerichs was part of a coalition of seven state treasurers and the California comptroller who sent a letter on April 17 to Tesla’s board chair, Robyn Denholm, urging Musk to devote more time to the company. Brad Lander, the New York City Comptroller, has been particularly critical. Lander, who oversees the city’s five public pension funds, joined shareholders last year in opposing Musk’s multibillion-dollar pay package. He now calls for Musk to be held accountable and for the company to have a "full-time CEO dedicated to leading the company, not a part-time lackey for an authoritarian climate denier." Dave Young, the Colorado State Treasurer, expressed similar sentiments, noting that Musk’s continued involvement with DOGE "endangers the market and the stability of the government" and that he should "step back now." Young’s statements reflect the broader concern among state treasurers about the financial risks posed to state pension funds. Colorado’s Public Employees' Retirement Association (PERA) has an estimated $64.4 million in Tesla stock, representing 2.3% of its holdings. Deborah Goldberg, the Massachusetts State Treasurer, commented on the gap between Musk’s promises and actual performance. She stated, "Yesterday's earnings call from Tesla offered plenty of promises, but what the American people need is performance," and emphasized the need for the board to "ensure this company delivers and realizes its full potential." Erick Russell, the Connecticut State Treasurer, highlighted the financial and reputational risks Musk has brought to Tesla. He noted that the company’s shareholders, employees, and customers are at risk and that the reputational damage might be irreparable. Connecticut’s Retirement Plans and Trust Funds have approximately $230 million in passive Tesla investments, making the state’s pension system vulnerable to the company’s volatility. Joakim Embu, a portfolio manager at KLP, a Norway-based pension company holding about 900,000 shares of Tesla, questioned whether Musk’s recent activities, such as his involvement with DOGE, align with the company’s best interests. Embu suggested that Musk may have breached his fiduciary duty by prioritizing personal interests over Tesla’s. Mike Pellicciotti, the Washington State Treasurer, stated that Tesla’s board must recognize the “severe damage” Musk is causing to the company’s performance and brand. Pellicciotti is a member of the Washington State Investment Board, which manages state public retirement and trust funds. Tesla represents about 1% of the Board's $45 billion in assets, or roughly $450 million. Randi Weingarten, President of the American Federation of Teachers, also weighed in on the matter. Representing trustees who serve on public pension funds holding Tesla stock worth $4 trillion, Weingarten described the first-quarter earnings as "disastrous" and criticized Musk for dismissing the company’s issues and overstating the timeline for full self-driving capability. She called for Tesla’s board to take concrete steps to address the ongoing risks to pension portfolios and retirement security. Industry insiders and financial experts are divided on the impact of Musk's dual commitments. While some acknowledge the need for him to refocus on Tesla, others argue that his involvement in DOGE and his broader political activities have eroded investor confidence and damaged the company’s reputation. Tesla, known for its groundbreaking electric vehicles and innovative technology, faces a critical juncture where sustained leadership and strategic focus are essential to restoring investor trust and achieving long-term growth. Tesla’s board and management will need to demonstrate tangible improvements in the company’s operations and financial performance to assuage the growing concerns of stakeholders and state officials. The collective pressure from these groups underscores the seriousness of the situation and highlights the importance of a CEO who can prioritize the company’s interests and maintain a consistent focus on driving sustainable success.