New York City Comptroller Brad Lander is urging the NYC Law Department to sue Tesla for securities violations related to CEO Elon Musk’s involvement in the Department of Government Efficiency (DOGE).
Lander claims that Tesla made material misstatements about Musk's active involvement in the company despite his role in the DOGE initiative.
Lander believes Musk's role in DOGE has negatively impacted Tesla's stock, resulting in over $300 million in losses for the NYC pension systems.
The potential litigation aims to bring about governance and leadership changes in Tesla and recover some of the pension systems' losses.