Tesla (TSLA) stock reversed today as a group of its major shareholders urged the business to finally come up with a date for its annual shareholder meeting.
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Legal Deadline
A group of 27 major shareholders, including U.S. state treasurers, pension funds and governance experts, in the EV maker said they were deeply concerned that Tesla has not yet scheduled a date for the meeting this year.
The last meeting was held in June 2024, meaning that Tesla, led by chief executive Elon Musk, is close to missing a legal deadline.
Under Texas law, shareholders can ask a court to require the company to hold its annual meeting if it has not done so within 13 months of the previous one.
“Tesla’s ongoing silence on the AGM is cause for concern,” the shareholders said in a letter to Tesla. “A lack of transparency raises serious concerns about the company’s respect for shareholder rights.”
They also want to ensure that shareholders have “sufficient time and information to engage meaningfully in the governance process.”
Controversial Times
Last year, shareholders approved Musk’s controversial $56 billion compensation package despite a Delaware court ruling that had previously voided it.
Since then, controversy has never been far from Tesla and Musk’s door. Its share price is down nearly 27% in the year-to-date.
The company has been hit by increased EV competition and Musk’s initially close relationship with President Trump, which resulted in him heading up the Department of Government Efficiency.
This has been followed by a very public falling out with Trump and the ending of EV tax credits meant to boost sales of green vehicles.
Hopes that this would then see Musk refocusing his attention on the business were dashed, however, with his recent 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 0.67% downside.
