Tesla (TSLA) stock was higher today as the EV maker appeared to bow to shareholder pressure and finally set a date for its annual shareholder meeting.
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The group, led by chief executive Elon Musk, said it will hold the meeting on November 6. The board has also set July 31 as the new deadline for the submission of shareholder proposals to be included in the proxy statement.
The company had in April said it would file its annual proxy statement later than expected and that the board had formed a special committee to consider some compensation matters involving Musk.
Shareholders’ Warning
The announcement comes only a day after a group of 27 major Tesla shareholders, including U.S. state treasurers, pension funds and governance experts, said in a letter that the EV maker was showing a lack of respect for shareholder rights by not setting a date.
The last annual shareholder meeting was held in June 2024, when shareholders approved Musk’s controversial $56 billion compensation package despite a Delaware court ruling that had previously voided it.
Venting Frustration
This year could see shareholders venting their frustration at the drop in the Tesla share price, down 27%, since the start of the year. It has been hit by poor sales, increased competition particularly from China and Musk’s initially close relationship with President Trump, which resulted in him heading up the Department of Government Efficiency.
This led to many investors worrying about the lack of time and focus Musk was giving Tesla and even some commentary that he may have to leave the role. After a high-profile falling out with President Trump, some had hoped he would spend more time on business than politics.
However, those hopes have recently been dashed with Musk’s declaration that he wants to set up a new political party.
Is TSLA a Good Stock to Buy Now?
On TipRanks, TSLA has a Hold consensus based on 13 Buy, 13 Hold and 9 Sell ratings. Its highest price target is $500. TSLA stock’s consensus price target is $294.42 implying a 0.49% downside.
