Tesla rejected 11 shareholder proposals on sustainability and accountability ahead of its annual meeting

Core Viewpoint - Tesla is facing scrutiny from shareholders regarding its governance and accountability, with several proposals submitted for discussion at the upcoming shareholder meeting, although many will not be addressed [1][2][5]. Group 1: Shareholder Proposals - A total of 12 proposals were submitted by both state-managed and private funds, focusing on sustainability and accountability measures [2]. - Tesla has requested the SEC to exclude 11 of these proposals from the agenda for the November meeting, with only one proposal accepted for a vote [5][12]. - The accepted proposal aims to ensure equal rights for all shareholders to sue Tesla, addressing concerns over a bylaw that limits derivative lawsuits to shareholders with more than 3% stakes [12]. Group 2: CEO and Company Performance - The upcoming meeting is the first since increased scrutiny of CEO Elon Musk, particularly regarding his involvement with DOGE and political activities [2]. - Tesla has experienced declining sales over the past two quarters, with its share price dropping over 30% since its peak in December 2024 [3]. - Shareholders have expressed frustration with Musk's leadership, with some questioning the company's future direction and the impact of Musk's public persona on sales [15][16]. Group 3: SEC and Governance - Shareholder proposals can only be included in the SEC docket if the company files a "no-action" request, which the SEC reviews [4]. - The SEC may agree to exclude proposals based on various factors, including economic relevance and the presence of false statements [4][13]. - Shareholders must meet specific criteria regarding their shareholdings to submit proposals, ensuring a level of commitment to the company [11].