Tesla Sets Annual Shareholder Meeting for November 6 Amid Mounting Pressure
Tesla announced Thursday that it will hold its annual shareholder meeting on November 6, following pressure from a group of 27 investors who urged the company to set a date, citing legal obligations.
The last meeting took place in June 2024. Since then, Tesla has faced a series of challenges, including CEO Elon Musk’s public conflict with President Donald Trump, the expiration of EV tax credits, and declining sales tied to its aging lineup of vehicles.
Tesla’s stock (NASDAQ: TSLA) has fallen 38% since reaching an all-time high in December. The company is now betting on autonomous driving technology to fuel its next phase of growth.
Concerns have also emerged about Musk’s political ambitions after he launched the “American Party” in response to policy disagreements with Trump. Some investors fear this political activity could negatively impact Tesla’s performance, especially as the company lags behind the “Magnificent Seven” tech giants.
Despite these concerns, Tesla shares rose around 3% in early trading after the board set a new deadline of July 31 for submitting shareholder proposals for inclusion in the upcoming proxy statement.
However, shareholder advocates argue that the real issue isn’t the tight proposal window, but the company’s efforts to sideline investor resolutions. Kevin Thomas, CEO of Share, said, “The Tesla board’s efforts to dismiss shareholder proposals is a bigger impediment than having a very short window to submit them.”
Tesla nearly missed a compliance deadline under Texas law, which requires companies to hold an annual shareholder meeting within 13 months of the previous one or risk legal action from investors.
Back in April, Tesla delayed filing its annual proxy statement and said it had formed a special board committee to evaluate certain compensation matters involving Musk.
At last year’s meeting, shareholders approved Musk’s controversial $56 billion pay package, despite a Delaware court ruling that had previously invalidated it.
Looking ahead, Musk appears to be drawing Tesla and his other ventures closer together. Grok, the chatbot developed by his AI startup xAI, is expected to roll out in Tesla vehicles by next week.
Piper Sandler analysts noted that the integration signals “formalized ties between Tesla and xAI,” and suggested the upcoming proxy filing could reveal more details on this front.
Meanwhile, Linda Yaccarino, CEO of X (formerly Twitter), unexpectedly resigned, joining a growing number of high-profile departures from Musk-led companies.
