BUFFALO, N.Y. — 2 On Your Side has obtained a letter from 17 high-powered Tesla investors to the company's board of directors critical of CEO Elon Musk and the company's labor history in Buffalo.
"We have grown increasingly concerned with governance and leadership issues at the company," the letter states. The group of investors holds more than $1.5 billion in Tesla shares. It includes the New York City Comptroller's Office, shareholder rights activist SOC Investment Group, and Amalgamated Bank, majority owned by Workers United, an affiliate of the Service Employees International Union, SEIU.
The letter raises serious concern over "The board's meager oversight of CEO Elon Musk and other critical aspects of corporate strategy, including the company's approach to human rights and labor rights, exposes the company to substantial legal, operational and reputational risks, thereby jeopardizing its long-term value."
Tesla fired 30 employees at its plant in Buffalo in mid-February. The employees claim they were dismissed for announcing plans to organize a labor union. Tesla called those claims "false allegations," but one fired employee, Arian Berek, said, “I feel blindsided. I got COVID and was out of the office. Then I had to take a bereavement leave. I returned to work, was told I was exceeding expectations, and then Wednesday came along. I strongly feel this is in retaliation to the committee announcement, and it’s shameful.”
The letter from the 17 Tesla investors says, "Reports from workers and regulators point to a toxic culture at Tesla Factories" and cites a complaint the fired Buffalo employees filed with the National Labor Relations Board, NLRB. It reads, "The above-named Employer terminated these individuals in retaliation for union activity and to discourage union activity." The NLRB case is still open.
The concerned investors say Tesla policies that require mandatory arbitration and non-disclosure agreements impact investors because they are unable to "know the full scope of harassment and discrimination claims raised by employees."
2 On Your Side reached out to Tesla Investor Relations for a response to the letter and is waiting for the company to respond. The investors are asking to meet with Tesla's Board "to discuss our concerns and requested remedies by May 25, 2023."