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Tesla has announced it will hold its annual shareholder meeting on November 6, ending months of uncertainty and growing discontent among major investors. The decision comes after a coalition of 27 institutional shareholders, representing over $1.5 trillion in assets, demanded immediate action from the company’s board. Under Texas corporate law, Tesla faced the risk of legal intervention if it failed to schedule the meeting by July 13.
Investor Pressure Mounts
Shareholder Demands:
The coalition, which includes state treasurers and pension funds, cited concerns over CEO Elon Musk’s political ambitions and Tesla’s recent sales performance. In a letter to the board, they highlighted the risks of leadership distraction and the company’s declining stock price—down more than 22% year-to-date.Legal Deadline:
Texas law allows investors to petition a court to compel a shareholder meeting if one is not held within 13 months of the previous gathering. Tesla’s deadline was set for July 13, intensifying pressure on the board to act.
“We’re concerned about the global drop in sales, the share prices tanking, and the CEO’s attention span.”
— Kevin Thomas, CEO, Shareholder Association for Research and Education