Tesla investors ask board to set date for overdue annual shareholder meeting

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(Reuters) -A group of 27 major Tesla shareholders urged the electric automaker’s board on Wednesday to set a date for its annual shareholder meeting this year, citing legal obligations and growing governance concerns.

Tesla is close to missing a legal deadline and has not announced this year’s meeting, the group consisting of U.S. state treasurers, pension funds and governance experts said in a letter.

“Tesla’s ongoing silence on the AGM is cause for concern,” they said against the backdrop of mounting scrutiny of over CEO Elon Musk’s political ambitions and the automaker’s falling sales and stock price.

The company did not immediately respond to a request for comment.

Investor confidence has taken a hit after Musk’s public feud with President Donald Trump and the ending of EV tax credits meant to boost sales of green vehicles. Tesla shares are down 27% so far this year.

Under Texas law, shareholders can move 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 last meeting was held in June 2024. The company had in April said it would file its annual proxy statement later than expected as the board had not decided on a date for the annual shareholder meeting.

The EV maker had then said the board had formed a special committee to consider some compensation matters involving Musk, without disclosing any details.

Last year, shareholders approved Musk’s controversial $56 billion compensation package despite a Delaware court ruling that had previously voided it.

Tesla is now on track for a second straight year of declining sales as its vehicle deliveries fell 13.5% in the second quarter.

Adding to the turbulence, Musk’s push to launch a new political party have raised concerns about distractions from Tesla’s core business.

(Reporting by Akash Sriram in Bengaluru; Editing by Arun Koyyur)