Save the date: Tesla has announced its annual shareholder meeting on November 6. The announcement follows a letter from investors urging the board to set a date, released a day earlier. Finally, Tesla has confirmed the meeting after a delay. The previous meeting was significant, as it involved approving Elon Musk’s pay package and relocating to Texas. Texas law mandates holding an annual meeting within 13 months of the last one, held on June 13, 2024. The upcoming meeting on November 6 was notified, with a deadline for shareholder proposals set for July 31. Harvard professor John Coates explained that while it’s not illegal to postpone, it is unusual. Still pending is the proxy statement addressing Musk’s compensation controversy. Investors challenge Musk’s pay package, which was rescinded twice despite shareholder approval. The board’s decision on Musk’s compensation remains uncertain, considering his involvement with other ventures. Investors have voiced concerns over Musk’s political affiliations and their impact on Tesla’s performance. Some investors expressed disappointment with the delayed meeting announcement, emphasizing the importance of corporate governance rules.
Tesla’s operations have shifted the company from a game-changer to a cultural divide. “It’s about time he steps down,” Pinsley expressed to Fortune. “His increasing involvement in politics, including considering the launch of a new political party, has transformed Tesla into a battleground for ideological conflicts rather than a business focused on its employees and customers.” Pinsley pointed out that Tesla benefits greatly from its inclusion in the S&P 500, leading index funds to continuously invest in the company. This creates a demand that is not necessarily tied to key factors like revenue, innovation, or governance. “While I see the potential of autonomous taxis in the long run,” Pinsley noted, “significant revenue generation is still years away, resulting in a price-to-earnings ratio that is disconnected from the fundamentals.” Additionally, Pinsley lamented that Tesla has become a polarizing entity, losing its visionary edge that once set it apart as a company with the potential to influence society. “Rather than being driven by innovation, Tesla is now propelled by inertia,” Pinsley remarked. “Its position in the S&P 500 artificially sustains demand for its stock, irrespective of its performance.”
