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Tesla’s 2022 annual shareholder meeting is currently scheduled to be held at the EV maker’s Austin Texas factory on August 4. In the past weeks, Tesla has been sending out passes to shareholders who wish to attend Tesla’s annual shareholders’ meeting in person.
Tesla has thousands of investors from all around the world, as a result, inviting every single person who holds a Tesla share to the annual shareholders’ meeting will be prohibitively expensive and complex.
To circumvent this issue, Tesla has been holding a draw amongst the EV maker’s investors to select a handful of individuals to attend the in-person event.
However, if an investor hasn’t won the draw, Tesla also streams the event live and all of the votes can be cast remotely by signing into the broker account that the person used to buy his/her Tesla shares.
The biggest issue scheduled for a vote at Tesla’s annual shareholders' meeting is a proposal by Tesla management to increase the number of authorized shares of Tesla’s common stock from 2,000,000,000 shares to 6,000,000,000 shares.
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Currently, there are a little more than a billion Tesla shares outstanding, with a provision for Tesla management to increase the number of shares to 2 billion. However, Tesla is looking to do a 3-to-1 stock split which means for every share an investor holds he/she gets 3 shares in return. This will bring the number of outstanding Tesla shares to 3 billion.
However, this doesn’t mean Tesla is going to be 3 times as big overnight, even though the number of shares is growing 3 fold, the 3 new shares will have one-third the value of the original Tesla share so the value of Tesla will remain constant.
Besides the 3 to 1 stock split, other matters up for a shareholder vote include several proposals by Tesla such as a proposal to elect 2 new directors; a proposal to limit directors’ terms to 2 years; a proposal to eliminate supermajority voting requirements; and finally a proposal to ratify the appointment of PricewaterhouseCoopers LLP as Tesla’s independent registered public accounting firm.
In addition to Tesla management’s proposals, there are also additional issues up for a vote. These proposals were submitted by Tesla shareholders, however, Tesla management recommends that shareholders vote against them.
And these proposals include…
A stockholder proposal regarding annual reporting on anti-harassment and discrimination efforts
A stockholder proposal regarding annual reporting on board diversity
A stockholder proposal regarding reporting on employee arbitration
A stockholder proposal regarding reporting on lobbying
A stockholder proposal regarding the adoption of a freedom of association and collective bargaining policy
A stockholder proposal regarding additional reporting on child labor
A stockholder proposal regarding additional reporting on water risk
In the face of it, it might seem odd why Tesla management would advise voting against some of the proposals listed above such as additional reporting on child labor and water risk. However, most proposals of this nature are usually written by organizations with a single Tesla share and with an intent to open a new attack angle on the EV maker.
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And sensing the importance of some of the proposals scheduled for a vote, Elon Musk has today weighed in on the shareholder vote by responding to a tweet from Tesla’s official Twitter account.
Tesla’s official Twitter account shared a link guiding shareholders on how to vote on the proposals for the upcoming shareholder meeting and added writing “each shareholder has a say in our direction, including deciding on whether Tesla should be allowed to do a 3:1 stock split.”
Musk in response implored Tesla investors to vote for the 3 to 1 stock split and against some of the proposals listed above such as the ones concerning child labor and water risk by writing “please vote your shares with Tesla!”
Please vote your shares with Tesla! https://t.co/ZbFWv0pkgG— Elon Musk (@elonmusk) July 19, 2022
Since a large chunk of Tesla shares is held by Musk, his family, and long-time friends, most likely the vote will end up in Tesla management's favor. However, we will be sure to keep you posted if there are any surprises.
Until then, make sure to visit our site torquenews.com/Tesla regularly for the latest updates.
So what do you think? Excited about Tesla’s shareholders’ meeting on August 4? Also, what do you think about the proposals Tesla management has recommended to vote for and against? Let me know your thoughts in the comments below.
Image: Courtesy of Tesla, Inc.
For more information check out: Tesla's Insane Demand and the Collapse of Legacy Auto
Tinsae Aregay has been following Tesla and The evolution of the EV space on a daily basis for several years. He covers everything about Tesla from the cars to Elon Musk, the energy business, and autonomy. Follow Tinsae on Twitter at @TinsaeAregay for daily Tesla news.
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