Tesla shareholders have been urging CEO Elon Musk to set a date for the annual shareholder meeting of 2025.
Now, the date has been set for November 6.
What's happening?
According to Reuters, Tesla shares are down 38% from their highest point last December.
Along with this, the company almost faced legal issues for not holding a shareholder meeting within 13 months of its previous one, held in June 2024.
Shareholders now have until July 31 to submit proposals for the proxy statement.
Kevin Thomas, CEO of the shareholder advocacy and advisory organization Share, said, "The Tesla board's efforts to dismiss shareholder proposals is a bigger impediment than having a very short window to submit them in the first place."
Why is Tesla important?
Tesla is a core player in the electric vehicle market.
A transition to more EVs can be a major step forward in reducing the heat-trapping pollution that is contributing to the changing climate. A Reuters report noted that EVs and hybrids release less pollution into the atmosphere than traditional vehicles.
However, Tesla avoiding these shareholder meetings can be a bad look for the company and can shake up shareholder confidence. As Business Insider wrote, these meetings are important for public accountability and transparency.
Tesla sales have also been down. CNN reported that Q2 sales were down about 13.5% from last year's sales. These decreases in sales have been partially attributed to Musk's polarizing political involvements, which have caused some consumers who view support for the brand as the same as support for Musk to explore other options.
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$5k 💵 The Tesla robotaxi has also received a lot of attention. With both praise from enthusiasts and safety concerns from other passengers, the innovation has kept Tesla in the news over the past few weeks.
What's being done to appease Tesla shareholders?
For now, Tesla shareholders have the remainder of July to submit any proposals for the proxy statement.
The delayed shareholder meeting may impact the public's views of the company's transparency and could harm investor confidence. These could have trickle effects that affect the company's financial backing or research and development.
"This delay is particularly troubling in light of the growing investor scrutiny Tesla faces," the shareholder letter said.
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