Brad Lander, the NYC Comptroller, wants the city’s Law Department to sue Tesla, Inc. (TSLA). He says the company tricked investors about how much time CEO Elon Musk spends running it.
He’s worried about Musk’s work with the Department of Government Efficiency (DOGE), a Trump administration project, and how it’s affecting Tesla’s stock.
Pension Funds and Musk’s Role
Lander looks after the city’s five pension funds. He posted on X on April 1, 2025, saying,
“My duty as Comptroller – and all the other fiduciaries of the NYC pension funds – is to protect the interests of NYC retirees. That’s why today I called on the Law Department to pursue securities litigation at Tesla.”
He believes Tesla’s claims about Musk’s focus don’t match his DOGE role. This, he says, has hurt the pension funds’ investments.
Stock Drop and Financial Losses
Tesla’s stock has dropped about 40% since its high in December 2024, after the election. Lander connects this fall to Musk’s outside work. The pension funds, which own a lot of Tesla shares, have lost more than $300 million, though numbers differ depending on the source. Lander thinks a lawsuit could get some money back and fix Tesla’s leadership problems.
“material misstatements from Tesla misled investors about his role at the company.”
He hopes legal action will improve Tesla’s management and recover losses. No lawsuit has been filed yet as of April 2, 2025. The idea is still being talked about by investors and experts.
Tesla’s Response and Next Steps
Tesla hasn’t answered the claims so far. The NYC Law Department hasn’t said if it will go ahead with a lawsuit. It depends on what happens next and what proof comes up about Tesla’s statements on Musk’s involvement.
Protecting Retirement Savings
Lander’s move is part of his job to protect NYC workers’ retirement money. He stressed this in his comments. More news will come as things develop.
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