The investment advisor to the city's five pension funds, which have collectively lost more than $300 million amid the stock's 40% plunge, is calling for legal action.

New York City Comptroller Brad Lander has asked the city, which is a major Tesla shareholder, to sue Tesla and CEO Elon Musk over alleged breaches of fiduciary duties. Lander asked the New York City Law Department to pursue securities litigation against Tesla on behalf of the New York City pension systems, which owns 3 million shares in Tesla.

It’s ironic that, as a pro-democracy and pro-climate group, we’re protesting against electric cars,” one activist said. “But you cannot sacrifice our democracy for one piece of the thing.”

Those shareholders include the five New York City pension funds, for which Lander is custodian. Their aggregate value of Tesla common stock fell to $831 million on March 28 vs. $1.3 billion on Dec. 31. Total pension system assets are $284.3 billion.

New York City Comptroller Brad Lander claims Tesla misled shareholders about CEO Elon Musk’s commitment due to his role in the Department of Governmen

Tesla owner, Elon Musk, has dismissed reports that he is set to leave his government role in the United States in the coming months, calling them “fake news.”The claim followed reports that Donald Trump had discussed Musk’s departure from the Department of Government Efficiency (DOGE),

Tesla’s share price jumped on report that Musk could leave US government role early