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Tesla board responds to ISS in four-page shareholder letter

Credit: Tesla

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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.

 

“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.

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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.

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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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What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Tesla Model Y L spotted in Europe ahead of expected September China launch

Tesla’s long-wheelbase Model Y L has seemingly been spotted in Europe.

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Credit: Tesla

Tesla’s long-wheelbase Model Y L has seemingly been spotted in Europe, signaling its upcoming debut outside China. A lightly camouflaged prototype was seen at a charging station near Germany’s Nürburgring, hinting that the extended wheelbase crossover will make its way to European markets after its expected September launch in China.

The Model Y L

The Model Y L, which will be offered in a six-seat configuration, is expected to add roughly 178 mm (7 inches) to the overall length of the standard Model Y, with 152 mm (6 inches) dedicated to stretching the wheelbase, as noted in an autoevolution report. This design tweak should unlock more third-row space, and it should be enough to rival the rear seating comfort of the much more expensive Model X, which can no longer be ordered in Europe.

While initially mistaken for a Model Y Performance during testing, the prototype’s extended rear door cutout and 19-inch wheels, which were unusual for a Performance variant, suggested that the covered unit was actually the Model Y L. The prototype’s wheels, if any, match those listed in China’s Ministry of Industry and Information Technology (MIIT) filing for the upcoming Model Y L.

Model Y L production

Tesla is expected to build the Model Y L at Giga Shanghai for the Chinese market initially, though speculations are high that the vehicle will also be built at Giga Berlin in Germany, as well as the Fremont Factory and Giga Texas in the United States. Recent reports have suggested that the Model Y L’s production in China has already begun, and sales there are slated to start in September. 

Considering the Model Y L’s lower entry price compared to the flagship Model X, the upcoming extended wheelbase crossover could quickly become Tesla’s new premier SUV for families needing extra passenger capacity, at least without stepping into the premium pricing bracket of the Model X.

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Tesla fans are urging Elon Musk to file a lawsuit against fake “disabled” Cybertruck video

As per Tesla supporters, enough is enough,

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Credit: bighuey313/Instagram

Tesla supporters and retail investors are urging CEO Elon Musk and the electric vehicle maker to pursue legal action against a rapper who faked a video of a Cybertruck that was reportedly disabled remotely by the company.

As per Tesla supporters, enough is enough.

The fake video

American rapper Big Huey made headlines over the weekend when he claimed that his Cybertruck had been deactivated by Tesla. The rapper claimed that Tesla had remotely disabled his Cybertruck unless he complied with a cease-and-desist letter over a song he made about the all-electric pickup truck. In his video, the rapper even claimed that he was “stranded as f*ck” because he could not move his Cybertruck.

The video itself was immediately flagged by longtime Tesla watchers as fake. It did not take long before Tesla itself posted a clarification on its official X account stating that the rapper’s viral video was indeed fake. By this time, however, the rapper’s claims have already made their way across the internet. 

Enough is enough

A look at the comments on Tesla’s clarification post shows that a good number of EV enthusiasts and retail investors are urging the company to pursue legal action against the rapper. One of the rapper’s videos, after all, featured an alleged cease-and-desist letter that featured what appeared to be a forged signature from a Tesla Legal executive. Others also noted that it is high time for Tesla to fight back more assertively against fake videos and allegations.

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While Tesla North America tends to be a punching bag of sorts for false claims, the company has been adopting a more assertive approach to defend its reputation in other countries. These include China, which has proven to be very assertive when it comes to defending its legal interests and reputation. This has worked well for Tesla China, so it is no wonder that investors are now clamoring for a similar legal approach in the United States.

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Tesla launches record-breaking 830 km CLTC range Model 3 in China

The long-range rear-wheel-drive Model 3 is expected to begin deliveries in September.

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(Credit: Tesla Asia/X)

Tesla has officially unveiled its longest-range vehicle to date in China: a new Model 3 variant capable of traveling up to 830 CLTC kilometers (515 miles) on a single charge. 

Priced from RMB 269,500 ($37,490), the single-motor, long-range rear-wheel-drive Model 3 is expected to begin deliveries in September. 

The new Model 3 RWD at a glance

Equipped with a 78.4 kWh battery pack from LG Energy Solution, the new Model 3 variant surpasses the current Model 3 long-range all-wheel-drive version’s 753 CLTC-kilometer (468-mile) range and sets a new benchmark for the company’s global lineup. It can accelerate from 0 to 100 km/h in 5.2 seconds and has a top speed of 200 km/h.

The launch expands Tesla’s Model 3 offerings in China to four versions. The lineup now includes the entry-level rear-wheel drive variant, which is powered by CATL lithium iron phosphate batteries and starts at RMB 235,500, as well as the dual-motor long-range all-wheel-drive and performance all-wheel-drive versions priced at RMB 285,500 and RMB 339,500, respectively. 

Improved range upgrades

Tesla confirmed on Weibo that all Model 3 versions in China have now received range upgrades this year, part of a broader strategy to refresh its lineup. The company is launching the new variant amid intensifying competition in China’s electric vehicle market. 

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From January to July, Tesla delivered 304,027 vehicles in China, a 6.32 percent decline year-on-year. The drop was driven largely by the Model Y’s sales of 202,257 units, which fell 17.15%, as noted in a CNEV Post report. The Model 3’s sales rose 26.54% to 101,770 units during the same period. To boost sales, Tesla is offering incentives on most Model 3 trims, including five years of interest-free financing, an RMB 8,000 discount on paint, and an RMB 8,000 insurance subsidy, among others.

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