A group of 27 major Tesla (TSLA) shareholders urged the company’s board on Wednesday to schedule this year’s annual shareholder meeting, citing legal requirements and rising governance concerns.
The investors, including U.S. state treasurers, pension funds, and governance experts, warned Tesla is nearing a legal deadline and has yet to announce the meeting date.
“Tesla’s ongoing silence on the AGM is cause for concern,” the group said, highlighting growing scrutiny over CEO Elon Musk’s political ambitions amid declining sales and a falling stock price.
Tesla did not immediately respond to requests for comment.
Investor confidence has been shaken by Musk’s public clashes with former President Donald Trump and the end of electric vehicle tax credits aimed at boosting green car sales. Tesla’s shares have dropped 27% so far this year.
Under Texas law, shareholders can petition a court to compel the company to hold its annual meeting if it hasn’t occurred within 13 months of the previous one.
Tesla last held its annual meeting in June 2024. In April, the company said it would file its proxy statement later than expected because the board had not yet set a date for the meeting.
At that time, Tesla disclosed the formation of a special committee to review compensation matters related to Musk, though no further details were provided.
Last year, shareholders approved Musk’s controversial $56 billion compensation package despite a Delaware court previously voiding it.
Tesla is on track for a second consecutive year of falling sales, with vehicle deliveries dropping 13.5% in the second quarter.
Adding to investor unease, Musk’s efforts to launch a new political party have raised concerns about potential distractions from Tesla’s core business.
Grok AI will be available in Tesla vehicles next week “at the latest”, Musk, said in a post on X on Thursday.
Musk’s AI startup xAI launched Grok 4, its latest flagship AI model, on Wednesday. While Musk had earlier said Tesla vehicles would be equipped with Grok, the billionaire CEO had not shared a timeline.
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