Elon Musk-headed Tesla to face massive penalty in Texas? What is wrong with EV marker?

Elon Musk-owned Tesla said Thursday that it would hold a shareholders meeting November 6, nearly four months after what is required under Texas law. The maker of electric cars made the announcement in a regulatory filing, a day after a group of state treasurers, comptrollers and shareholder representatives sent a letter to the company expressing "deep concern regarding the lack of timely notice about the date and format of Tesla's 2025 annual general meeting." Tesla shares were up 2.5 per cent in midday trading.

Penalty for Tesla?

Texas, where Tesla is incorporated, requires companies listed on a stock exchange to hold annual meetings within 13 months after the previous meeting. In Tesla's case, that deadline is Sunday. It is unclear whether Tesla will face any penalties for holding a late meeting.


In a document, dated Wednesday, filed with the Securities and Exchange Commission, Tesla did not give a reason for delaying the meeting.

Annual meetings provide a forum for shareholders to speak directly to company executives and boards of directors. Shareholders also vote on nominations for board members and proposals submitted by the company or shareholders. The deadline to file proposals for the November meeting is July 31.

What's Wrong With Tesla?

Tesla's shareholders are expected to have a lot to say to Elon Musk, the company's CEO. Tesla's stock price has been falling, and sales are down because of increased competition, an aging product lineup and Musk's immersion in right-wing politics, which has alienated the liberals most likely to buy electric cars.

Investors have also expressed concern that Musk's political activities, including plans to form a third party, distract him from managing Tesla at a critical time for the company.

Musk has dismissed worries about falling car sales, saying the company's future lies with autonomous driving technology and humanoid robots.

FAQs

Q1. Who is CEO of Tesla?
A1. CEO of Tesla is Elon Musk.

Q2. When is Texas shareholders meeting?
A2. Tesla said Thursday that it would hold a shareholders meeting November 6.