Tesla said on Thursday that its annual shareholder meeting will be held on November 6, according to a new filing with the U.S. Securities and Exchange Commission (SEC).
The announcement comes a day after a group of 27 shareholders — including heads of large public pension funds in New York and financial advisors — signed a letter urging the Board of Directors to set a date for the meeting.
“Tesla‘s ongoing silence on the AGM is cause for concern,” the group wrote.
The letter reminded Tesla of its legal obligations under Texas law, which requires companies to hold annual shareholder meetings within 13 months of the previous one — if shareholders request it.
Since the company’s last shareholder meeting was on June 13 of last year, the next one should take place by July 13 to meet legal requirements.
However, the new filing confirms that the company will miss the deadline, as the meeting is scheduled for four months after July 13.
“We think it’s a very important moment for the board to face shareholders and answer questions,” said Kevin Thomas, CEO of Canadian advisory firm Share, according to the WSJ.
Thomas cited “the company’s performance, the attention span of the CEO and other matters” as urgently needing to be discussed. He saw it as “an exercise in accountability,” as the board is elected by shareholders and needs “to be responsive.”
Tesla‘s Board of Directors has set July 31 as the new deadline for submitting shareholder proposals to be included in the proxy statement.
Back in April, the company warned investors that the annual proxy statement would be delayed because the Board was reviewing CEO Elon Musk’s compensation through a special committee.
At the annual meeting last year, investors reapproved Musk’s pay package, which is still being discussed in court.
The pay package discussion goes back to 2018, when Tesla approved a performance-based pay package for Elon Musk, potentially worth up to $50 billion.
Six years later, a Delaware court struck down the package, citing concerns over poor corporate governance and lack of transparency with shareholders.
Earlier this week, Wedbush analyst and long-time Tesla bull Dan Ives said that the Board should approve a new “incentive-driven pay package for Musk as CEO.”
The proposal included giving the chief executive 25% voting control with “oversight on political endeavours” and controlled time allocation to the EV maker — to which Musk later reacted, saying “shut up, Dan.”
Elon Musk announced over the weekend that he plans to launch a new political party in the U.S., which led Donald Trump to denounced the move and accuse Tesla’s chief of fostering “disruption and chaos.“
The public argument between Musk and Trump led the company’s shares to drop 6.8% on Monday, closing at $293.94.
Morgan Stanley analyst Adam Jonas also said he believes “investors should be prepared for further devotion of resources (financial, time/attention) in the direction of Mr. Musk’s political priorities.”
Tesla is currently trading 1.0% higher on Thursday’s pre-market session, at $299. Year to date, the stock lost 26.7% of its value.
