Tesla Takes Action: Ensuring EU Shareholders Have a Say in 2024 General Meeting
In a significant move, Elon Musk has announced that Tesla will be coordinating with European banks and brokers to ensure that their European shareholders can vote in the upcoming 2024 Annual Shareholders Meeting. The announcement followed concerns raised by Alexandra Merz on social media that TSLA shareholders, particularly those holding 2,000,000 shares, were unable to vote on General Meetings proposals through their proxies.
A Growing Issue
The issue caught Musk's attention swiftly. In response to Merz’s post, he stated, “This is concerning. Tesla will reach out to these banks/brokers. Shareholders have the right to vote their shares!” This declaration has sparked a wave of responses from at least two significant online brokers in the EU, namely Avanza and Nordnet, who are now actively working to enable voting solutions for their TSLA shareholders.
This is concerning. Tesla will reach out to these banks/brokers. Shareholders have the right to vote their shares! https://t.co/Uvg5QKcRQ8
— Elon Musk (@elonmusk) May 19, 2024
Steps Taken by Brokers
Avanza and Nordnet have shown a considerable interest in resolving this matter. Both brokers noted the increasing interest in Tesla’s general meetings among their clients. Avanza serves approximately 84,000 TSLA shareholders, while Nordnet has around 65,000 customers holding Tesla shares. This significant interest has propelled both brokers to find a viable solution, as explained by Johan Tidestad, Nordnet’s Head of Communications, “Ahead of this meeting, we have noticed a lot of pressure from our customers, so we are currently working on a solution for our customers to be able to vote.”
Avanza's Communications Manager, Sofia Svavar, echoed similar sentiments, stating, “We plan to send out information to affected customers during the afternoon.”
A Look at the 2024 Proposals
The 2024 Annual Shareholders Meeting, scheduled for Thursday, June 13, 2024, at 3:30 PM CT, has several crucial proposals on the agenda. Shareholders will vote on the appointment of two director nominees, James Murdoch and Kimbal Musk. Another key proposal will involve the ratification of Elon Musk’s 100% performance-based stock options from 2018. Additionally, a significant vote will be cast on Tesla’s domestication from Delaware to Texas, a strategic move poised to realign the company’s operational base.
For those keen on the specifics, Tesla has provided a comprehensive document detailing all proposals for the 2024 Annual Shareholders Meeting. This resource offers shareholders a deep dive into the specifics of each proposal, enabling them to make informed voting decisions.
If you are an affected shareholder or interested party, it is advisable to stay tuned for updates from your respective brokers. This proactive approach by Tesla, Avanza, and Nordnet not only underscores the importance of shareholder votes but also highlights the increasing democratization of international stockholding practices.