Major investors in Tesla Inc. are urging the company’s Board of Directors to hold an emergency meeting due to rising tensions between CEO Elon Musk and President Donald Trump.
Background
A group of 27 major Tesla investors, including U.S. state treasurers, pension funds, and governance experts, have requested the company to set a date for the meeting in a letter. The group expressed concerns about Musk’s political ambitions, the feud with Trump, as well as declining sales figures.
Key Issues
- Under Texas law, the investors can move a court to require the Board to hold the meeting if the company hasn’t done so in 13 months.
- The EV giant had said in April that it would be filing its annual proxy statement later than expected, as the Board of Directors hadn’t decided on a date for the meeting.
- Tesla sales have been dwindling, with the number of units sold reaching double-digit drops in multiple markets.
Impact of Musk-Trump Dispute
The growing tensions between Musk and Trump, following the Trump administration’s budget cuts and the official end of the $7,500 EV credit, have seen Tesla stock tumble. This coincides with Musk’s return to politics, something for which he has been heavily criticized by Trump and industry experts.
Investor Concerns
The investors are concerned about Musk’s commitment to Tesla following his announcement of the “America Party” political party. They have asked the company to address these concerns and hold the emergency meeting to discuss the future of the company.
Company Performance
Tesla offers poor Momentum and Value, while scoring well on the Growth metric and offering satisfactory Quality. The company’s performance has been affected by the declining sales and the ongoing dispute between Musk and Trump.
Next Steps
The investors are waiting for the company to respond to their request and set a date for the emergency meeting. The outcome of the meeting will be crucial in determining the future of Tesla and its leadership.
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For more information on the Future Of Mobility coverage, please check out the related articles on the topic.
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