Tesla Rewards Elon Musk’s Reality-Distortion Field
Is this “sustainable abundance”? Shareholders enthusiastically voted to dilute their own stakes, benefiting Musk’s consolidation of power.
The most notable moment at Tesla’s annual shareholder meeting on Thursday wasn’t Elon Musk’s approval of an almost unimaginable pay package nearing $1 trillion. That result was expected, given Musk’s strong support from retail investors and his significant voting control.
The more revealing moment came when shareholders, many dressed in Tesla-themed apparel and enjoying the company’s signature lo-fi music, booed a proposal by New York State Comptroller Thomas DiNapoli. The proposal aimed to repeal a new bylaw that effectively prevents regular shareholders from suing the company.
Tesla’s board repeatedly recommends against such accountability measures. Over the years, pension fund managers, human rights advocates, and individual investors have urged shareholders to take minimal steps to curb the company’s worst practices — like preventing child labor in its supply chain or linking sustainability metrics to executive compensation.
Yet, shareholders consistently align with Tesla’s board — and more precisely, with Musk — rejecting these proposals.
Shareholders booed a proposal to repeal a new bylaw that essentially makes it impossible for regular shareholders to sue the company.
Time and time again, shareholders side with the company’s board — or more accurately, with Musk — and reject accountability measures.
Summary: Tesla’s shareholders repeatedly endorse Elon Musk’s control, dismissing efforts to increase corporate accountability despite ongoing concerns over governance and ethical practices.