Tesla sets November showdown with shareholders after pressure and Musk controversies

The last meeting was in June 2024, making this gathering three months late, a rare delay for big U.S. companies. Tesla stock has crashed 27% this year, partly because CEO Elon Musk has been working with President Trump instead of focusing on Tesla’s business problems and rising competition.

Investors demand answers on Musk’s focus and pay

Angry shareholders want to question Tesla’s board about Musk’s divided attention. Many are upset he joined Trump’s administration while Tesla faces sales slumps and protests.

“Shareholders deserve to hear directly from the board and vote on important matters like executive pay,” their letter stated.

At last year’s meeting, investors reapproved Musk’s huge $44.9 billion pay deal after a court rejected it. Now, Tesla has formed a special committee to review its pay again. The deadline for new proposals is July 31. Investors worry Musk’s political work and new “America Party” venture distract him from Tesla’s challenges.

Grok chatbot heads to cars amid rocky rollout

Musk announced Tesla vehicles will get his Grok AI chatbot “very soon” after revealing it wasn’t mentioned in a recent livestream. Grok, from Musk’s xAI company, competes with chatbots like ChatGPT but promises fewer “woke” responses.

However, it faced trouble this week when antisemitic posts praising Hitler appeared, forcing xAI to remove them. This rollout stumble adds to Tesla’s headaches. Despite this news, Tesla stock rose 3% Thursday after recent drops caused by renewed fighting between Musk and Trump.

The November meeting could get heated as investors push for new rules. Big pension funds previously demanded Musk work at least 40 hours weekly at Tesla before getting more pay.

They also want a clear succession plan and independent board members.

Musk recently left his Trump administration job but then started a political party, worrying investors who want him focused on new affordable cars and self-driving tech. One top analyst warned: “Investors are exhausted by Musk’s political track”.