Tesla’s board of directors has responded to one proxy advisory firm that recently urged its investors to vote against ratifying Elon Musk’s 2018 pay package, ahead of the upcoming annual shareholders meeting.
On Monday, Tesla’s board shared a four-page letter to shareholders on its website, detailing what it believes proxy advisory firm Institutional Shareholder Services (ISS) missed in its recent evaluation of the upcoming vote.
In it, the board writes that the firm was right to urge investors to vote in favor of proposal three, or moving incorporation from Delaware to Texas, adding that it missed important points in encouraging them to vote against proposal four, ratifying Musk’s previously approved $56 billion compensation package.
Far too much power is concentrated in the hands of “shareholder services” companies like ISS and Glass Lewis, because so much of the market is passive/index funds, which outsource shareholder voting decisions to them.
ISS and Glass Lewis effectively control the stock market.
— Elon Musk (@elonmusk) January 24, 2023
“Despite the recognition of the benefits of the 2018 CEO Performance Award to both Tesla and its stockholders, ISS ultimately reached the wrong conclusion about Proposal Four due to a technical misunderstanding around the Award,” writes the board.
Tesla’s board of directors also outlines four specific points ISS made in its argument against a vote in favor of ratifying the package, arguing that the firm doesn’t fully understand what ratification means—alongside other points.
The letter also includes a recent post on X from Musk, in which he said that the compensation plan would let the CEO “sell enough stock to pay the taxes,” the rest of which would need to be held for five years.
The deal allows me to sell enough stock to pay the taxes. The remaining stock must be held for 5 years, so it is impossible for me to cash out and run.
— Elon Musk (@elonmusk) June 1, 2024
Last week, ISS wrote that the pay package was “excessive, even given the company’s success,” noting that the firm is unsure if the award will “increase Musk’s focus on Tesla.”
The value of Musk’s compensation package was set and approved by shareholder votes in 2018, as part of a performance-based tranche system that would ultimately net him around $56 billion in Tesla shares for that time. The vote to ratify the plan comes after it was struck down and effectively voided by Delaware Judge Kathaleen McCormick in January.
Tesla shareholders have until June 13 to vote their shares on these and other proposals, and the company has recently used multiple avenues to encourage investors to vote yes on proposals three and four. Other firms have been divided on the vote, with some, such as Glass Lewis, encouraging shareholders to vote against the proposals, while others have urged stockholders to vote in favor of them—in accordance with board recommendations.
Last month, Tesla shared a website dedicated to showing investors how to vote, and encouraging them to vote yes on proposals three and four. You can visit that site here.
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Tesla has officially shown that it is eyeing two new states for Robotaxi operation in the U.S., as it hopes to add the new areas to its ever-growing list of places where the suite is either active or in the testing phase.
Tesla first launched its Robotaxi suite in Austin, Texas, in late June. It expanded the suite to the San Francisco Bay Area just a month later. Since then, it has not launched any public rides in any other states, but it has gained several approvals for early testing.
In preparation for operation in new states, Tesla routinely lists job postings on its Careers website, which helps align potential employees with opportunities ahead of regulatory approvals. This is a strategy that allows Tesla to start operations immediately upon licensing for testing.
Tesla started hiring Vehicle Operators for Autopilot in Arizona and Nevada months before the company gained any sort of approvals from state governments for Robotaxi. However, those approvals eventually came in the form of testing licenses, which allow the company to perform validation ahead of its public launch.
Tesla begins validating Robotaxi in a new area, hinting at expansion
Now, Tesla has posted job listings for Vehicle Operators for Autopilot in two new states: Colorado and Illinois. The Colorado job listing is located in Aurora, a suburb of Denver. Tesla is looking for Robotaxi operators in Chicago as well.
These postings hint toward Tesla’s continuing efforts to expand Robotaxi to new places. Earlier this year, CEO Elon Musk said the company would like to have Robotaxi available to at least half of the U.S. population.
It has expanded significantly since its initial launch in late June, but it is still a far way off from where Tesla would like it to be by year’s end.
So far, Tesla has job listings for Autopilot Vehicle Operators in Arizona, California, Texas, Florida, Colorado, Nevada, and Illinois.
Tesla’s advertising strategy has taken a drastic turn as the company’s upcoming Shareholder Meeting will feature perhaps the most crucial vote in its history: the approval of CEO Elon Musk’s new pay package.
For years, the issue of Tesla’s advertising and marketing strategy has been a major point of conversation for investors in fans. It seems to be split right down the middle, with half wanting Tesla to set aside some money for advertising. The other half, just the opposite.
Tesla has been transparent that the money it would spend on advertising, marketing, and public relations is better set aside for the development of future products.
However, it has recently adopted a different tone in advertising, pushing some commercials on social media platforms like X and Instagram.
For the first time, an ad was seen on streaming services like Paramount+, but it wasn’t promoting Tesla’s products directly. Instead, it was more of a message for shareholders to vote on Musk’s pay package, something Tesla feels is a necessity:
Well this is a first. Tesla is running paid ads on Paramount+ encouraging people to vote their $TSLA shares ahead of the annual shareholder meeting on November 6th.
“Tesla is on the precipice of its next wave of transformations growth, and we need your support; We urge you to… pic.twitter.com/FTo5eFQJRZ
— Sawyer Merritt (@SawyerMerritt) October 14, 2025
“The future of Tesla is in your hands,” the ad reads at the end. It seems as if Tesla is taking whatever steps it needs to accomplish the task of getting Musk a new pay package and retaining him as its CEO.
On September 5, Tesla officially outlined its plans for a CEO Performance Award for Musk. It would require him to lift Tesla’s market capitalization to about $8.5 trillion, up from the $1.36 trillion it sits at today.
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It is obvious that Tesla is really hoping to get the pay package passed and is willing to shift some of its budget to encourage shareholders to vote.
However, there are some interesting perspectives on the move, and it’s sort of strange to see Tesla not advertising its vehicles or products, but only its pay package that would get its CEO paid.
Some of those who saw the ad are questioning the strategy:
Definitely a sign of desperation for $TSLA. They wouldn’t need to beg for votes if the BOD just did their job and held Elon accountable for his actions in the past. His blatant disregard for Tesla’s brand and the actions he takes in the public eye are exactly why I voted NO.
— squawksquare (@squawksquare) October 14, 2025
Doesn’t this taste wrong to anyone else?
No ads for the business? Only for the CEOs pay package?
— Schrodinger’s Wealth (@BosCybertruck) October 14, 2025
Tesla is validating Robotaxi in a new area, and as the company has continued to gain some additional permissions to begin testing in new states, it seems its Full Self-Driving-based ride-hailing project is moving toward a larger footprint.
Two Robotaxi units with LiDAR validation equipment were spotted in Gilbert, Arizona, recently, showing that Tesla is aiming to launch its ride-hailing service in the state soon:
TESLA ROBOTAXI SPOTTED VALIDATING IN GILBERT, AZ! :0 pic.twitter.com/kqtQEBwl8Y
— Greggertruck (@greggertruck) October 11, 2025
Another unit was spotted in Tempe, Arizona:
Spotted this one and another one behind it in Tempe, AZ. I also saw a pair driving from Mesa to Tempe. Looks like they’re validating the entire east valley. I haven’t seen any in the west valley yet. pic.twitter.com/gFWTHhmBLT
— TechCat (@elviswjr) October 12, 2025
These types of validation vehicles have been spotted in several areas ahead of their launch as a public ride-hailing service for passengers. Tesla first launched Robotaxi in Austin, Texas, back in late June, and since then, it has expanded to the Bay Area of California.
However, Tesla has continued to attempt to expand Robotaxi to other areas as well, including Nevada and Arizona. It has also been working toward approvals in other states based on job postings, as Tesla is hiring for Autopilot Vehicle Operators in New York and Florida, as well.
The expansion of the Robotaxi ride-hailing service has been an effort that Tesla has been spending a lot of time on over the past few months. CEO Elon Musk said the expansion aims to bring Robotaxi to at least half of the U.S. population by the end of the year, but there is still plenty of work to be done.
Tesla Robotaxi heads to a new major Texas city for the first time
Tesla did make its Robotaxi app public in recent months, allowing more members of the public to experience the suite for themselves, as long as they could get to Austin or the Bay Area.
In the coming months, it seems more apparent that Tesla will take a broader focus on expanding Robotaxi, especially with the fact that these validation vehicles are being spotted throughout different parts of the United States.
Tesla eyes two new states for Robotaxi
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