New York City Comptroller Brad Lander is urging the city’s law department to pursue securities litigation against Tesla on behalf of NYC’s pension systems. 

A press release on the Comptroller’s website said the basis of the potential litigation would be focused on what it characterizes as “material misstatements” from Tesla claiming that its chief executive officer Elon Musk spends significant time on the company and is highly active in its management, despite his helming the Trump Administration’s DOGE initiative.

In the release, Lander said Tesla has suffered financially, causing enormous losses for its shareholders. “In less than three months, Tesla stock has lost nearly 40% of its value, with losses over $300 million for the New York City pension systems,” he added. “We have long expressed concerns that the Tesla board has failed to provide independent oversight, or to require that Musk – or someone else – serve as a full-time CEO. Now, it appears that material misstatements from Tesla misled investors about his role at the company. That’s why I’m calling on the Law Department to file securities litigation: because Elon Musk is so distracted that he’s driving Tesla off a financial cliff and taking down shareholder value with it.”