Craig Dubitsky and Robert Downey Jr. Are Launching a Coffee Business With a Philanthropic Mission

If Employers Crack Down on Return-to-Office, They May Lose High Performers

AI Regulation Process Is Well Underway, White House Says

Pessimism Takes a Back Seat as Consumer Confidence Hits a 2-Year High

New VC Simulators Help Founders Practice Their Investor Pitches--but Can They Handle True Disruption?

The Biden Administration Moves Forward With Salary History Ban and Pay Equity Rules. What You Need to Know

How Climate Tech Startups Should Approach Fundraising

As a chorus of corporate activists openly call for an end to diversity, equity, and inclusion initiatives in academia and business, one of the anti-DEI movement's most prominent cheerleaders, Tesla CEO Elon Musk, seems to be putting it into practice at the electric carmaker.

As Quartz reported this week, Tesla's latest annual shareholder report nixed all mention of diversity programs and employee resource groups. Scrubbing such language marks the culmination of a gradual turnaround from 2019's shareholder report, which stated the company's aim to "attract a pool of diverse and exceptional candidates and support their career growth," and mentioned the company's various ERGs. That year's report lauded the company as a "majority-minority" employer.

The latest report mentions environmental, social, and corporate governance concerns but only in relation to demands from other activist shareholders, who warn that neglecting DEI could sully Tesla's brand image. "Investor advocacy groups, certain institutional investors, investment funds, and other influential investors are also increasingly focused on ESG practices and in recent years have placed increasing importance on the non-financial impacts of their investments," the report states.

The mention of ESG imperatives, though sparse compared with previous years, seem to fly in the face of Musk's dismissal of diversity initiatives as "another word for racism." The letter continues, saying: "if our ESG practices do not meet investor or other industry stakeholder expectations, which continue to evolve, we may incur additional costs and our brand, ability to attract and retain qualified employees and business may be harmed."

The letter also warns of union activity among Tesla factory workers and the potential for work stoppages to delay manufacturing quotas. Following its huge contract win at the Detroit Three last year, the United Auto Workers union announced a push to organize Tesla's manufacturing workers.

Musk has also been at odds with the National Labor Relations Board for some time: In 2021, an NLRB judge ruled that a tweet from 2018 in which Musk asked "why pay union dues & give up stock options for nothing?" must be deleted. Tesla, which, unlike most U.S. automakers, is not unionized, has faced lawsuits related to working conditions, alleged labor violations, and racial discrimination, The company is currently appealing the decision over Musk's deleted tweet.

In Tesla's Q4 earnings call last week, which one analyst called "disastrous," Musk seemed to openly quarrel with the company's board. But Musk, who last December wrote "DEI must die," on his social-media platform X (formerly Twitter), isn't likely to change anytime soon.

Besides, he has other issues. Yesterday, a Delaware judge nullified Musk's $55 billion compensation package at Tesla, calling it "an unfathomable sum" that wasn't fair to shareholders.

A refreshed look at leadership from the desk of CEO and chief content officer Stephanie Mehta