Investors grow restless as Tesla inches toward key shareholder meeting deadline — and risks violating Texas law

Core Viewpoint - Tesla is at risk of violating Texas corporate governance rules due to the lack of scheduling for its annual shareholder meeting, which must occur within 13 months of the last meeting, with a deadline approaching on July 13, 2025 [1][10]. Group 1: Shareholder Concerns - A group of investors managing $1.5 trillion in assets has sent a letter demanding Tesla announce the date for its Annual General Meeting and provide sufficient information for shareholders to engage in governance [2]. - The letter highlights concerns about Tesla's transparency and respect for shareholder rights, emphasizing the importance of strong corporate governance for long-term success [2]. - The letter is signed by 27 shareholders, including large pension funds and state treasurers from New York, Oregon, and Maryland, as well as international funds from Denmark and Sweden [2]. Group 2: Impending Deadline and Potential Actions - Tesla has four days left to schedule the meeting, or shareholders may seek a court order to compel the meeting [10]. - Texas law allows a court in the county of the company's principal executive office to order a meeting if the company fails to hold one within the specified period [9]. Group 3: Company Performance and Market Reaction - Tesla shares have declined nearly 40% from their peak in December 2024 and around 30% since the inauguration of President Donald Trump [11]. - The company has experienced declining sales in the first two quarters of 2025, leading to growing investor fatigue regarding CEO Elon Musk's political activities, which are perceived as distractions from the company's core operations [11].