Tesla Rewards Elon Musk’s Reality-Distortion Field
At Tesla’s annual shareholder meeting, the most notable event was not Elon Musk securing an almost $1 trillion pay package—an outcome expected due to his strong support from retail shareholders and control over his extensive shares. Instead, the revealing moment came when shareholders, many dressed in Tesla-themed attire and enjoying the company’s lo-fi music, booed a proposal by New York State Comptroller Thomas DiNapoli.
Proposal to Repeal Anti-Litigation Bylaw Rejected
DiNapoli’s proposal aimed to repeal a recently enacted bylaw that makes it nearly impossible for ordinary shareholders to sue Tesla. Despite calls for increased corporate accountability, Tesla’s board recommended voting against this measure, a stance it maintains with most accountability initiatives.
Shareholders Side with Musk Over Accountability Measures
Over the years, shareholders have consistently opposed proposals from pension fund managers, human rights advocates, and individual investors designed to curb Tesla’s controversial practices. These include efforts to prevent child labor exploitation in the supply chain and to tie executive compensation to sustainability performance.
“Time and time again, shareholders side with the company’s board — or more accurately, with Musk — and reject them.”
This continued pattern highlights how shareholders consistently prioritize Musk's vision and control over implementing even minimal checks on the company’s governance and ethical concerns.
Author’s Summary
Tesla shareholders continue to support Elon Musk’s leadership and oppose measures aimed at increasing corporate accountability, reflecting strong alignment with Musk’s control over the company.