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.
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— 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.
Tesla shareholder sues Elon Musk accusing him of insider trading
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.
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Tesla FSD Supervised ride-alongs in Europe begin in Italy, France, and Germany
The program allows the public to hop in as a non-driving observer to witness FSD navigate urban streets firsthand.
Tesla has kicked off passenger ride-alongs for Full Self-Driving (Supervised) in Italy, France and Germany. The program allows the public to hop in as a non-driving observer to witness FSD navigate urban streets firsthand.
The program, detailed on Tesla’s event pages, arrives ahead of a potential early 2026 Dutch regulatory approval that could unlock a potential EU-wide rollout for FSD.
Hands-Off Demos
Tesla’s ride-along invites participants to “ride along in the passenger seat to experience how it handles real-world traffic & the most stressful parts of daily driving, making the roads safer for all,” as per the company’s announcement on X through its official Tesla Europe & Middle East account.
Sign-ups via localized pages offer free slots through December, with Tesla teams piloting vehicles through city streets, roundabouts and highways.
“Be one of the first to experience Full Self-Driving (Supervised) from the passenger seat. Our team will take you along as a passenger and show you how Full Self-Driving (Supervised) works under real-world road conditions,” Tesla wrote. “Discover how it reacts to live traffic and masters the most stressful parts of driving to make the roads safer for you and others. Come join us to learn how we are moving closer to a fully autonomous future.”
-->Building trust towards an FSD Unsupervised rollout
Tesla’s FSD (Supervised) ride-alongs could be an effective tool to build trust and get regular car buyers and commuters used to the idea of vehicles driving themselves. By seating riders shotgun, Tesla could provide participants with a front row seat to the bleeding edge of consumer-grade driverless systems.
FSD (Supervised) has already been rolled out to several countries, such as the United States, Canada, Australia, New Zealand, and partially in China. So far, FSD (Supervised) has been received positively by drivers, as it really makes driving tasks and long trips significantly easier and more pleasant.
FSD is a key safety feature as well, which became all too evident when a Tesla driving on FSD was hit by what seemed to be a meteorite in Australia. The vehicle moved safely despite the impact, though the same would likely not be true had the car been driven manually.
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Swedish union rep pissed that Tesla is working around a postal blockade they started
Tesla Sweden is now using dozens of private residences as a way to obtain license plates for its vehicles.
Two years into their postal blockade, Swedish unions are outraged that Tesla is still able to provide its customers’ vehicles with valid plates through various clever workarounds.
Seko chairman Gabriella Lavecchia called it “embarrassing” that the world’s largest EV maker, owned by CEO Elon Musk, refuses to simply roll over and accept the unions’ demands.
Unions shocked Tesla won’t just roll over and surrender
The postal unions’ blockade began in November 2023 when Seko and IF Metall-linked unions stopped all mail to Tesla sites to force a collective agreement. License plates for Tesla vehicles instantly became the perfect pressure point, as noted in a Dagens Arbete report.
Tesla responded by implementing initiatives to work around the blockades. A recent investigation from Arbetet revealed that Tesla Sweden is now using dozens of private residences, including one employee’s parents’ house in Trångsund and a customer-relations staffer’s home in Vårby, as a way to obtain license plates for its vehicles.
Seko chairman Gabriella Lavecchia is not pleased that Tesla Sweden is working around the unions’ efforts yet again. “It is embarrassing that one of the world’s largest car companies, owned by one of the world’s richest people, has sunk this low,” she told the outlet. “Unfortunately, it is completely frivolous that such a large company conducts business in this way.”
-->Two years on and plates are still being received
The Swedish Transport Agency has confirmed Tesla is still using several different workarounds to overcome the unions’ blockades.
As noted by DA, Tesla Sweden previously used different addresses to receive its license plates. At one point, the electric vehicle maker used addresses for car care shops. Tesla Sweden reportedly used this strategy in Östermalm in Stockholm, as well as in Norrköping and Gothenburg.
Another strategy that Tesla Sweden reportedly implemented involved replacement plates being ordered by private individuals when vehicles change hands from Tesla to car buyers. There have also been cases where the police have reportedly issued temporary plates to Tesla vehicles.
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Czech Deputy excited for Tesla FSD, hints at Transport Committee review
The ANO party lawmaker shared his thoughts about FSD in a post on social media platform X.
Martin Kolovratník, a Czech Republic Chamber of Deputies member, has expressed his excitement for Tesla’s Full Self-Driving (FSD) after an apparent constituent called for a quick approval for the advanced safety system.
The ANO party lawmaker, who drives both diesel and EV, shared his thoughts about the matter in a post on social media platform X.
The official’s initial statements
Kolovratník kicked off the exchange with a post outlining his coalition’s efforts to scrap highway toll exemptions for electric vehicles and plug-ins starting in 2027.
“Times have changed. Electric vehicles are no longer a fringe technology, but a full-fledged part of operations. And if someone uses the highway network, they should follow the same rules as everyone else. That’s the basis of fairness,” he wrote.
He emphasized equity over ideology, noting his personal mix of diesel and electric driving. “For this reason, there is no reason to continue favoring one technology at the expense of another… It’s not about ideology, it’s about equal conditions. That’s why we clearly agreed within the new coalition: the exemption for electric vehicles and plug-ins will end in 2027. The decision is predictable, understandable, and economically sound.”
-->Tesla FSD enthusiasm
The conversation pivoted to Tesla’s FSD when X user @robotinreallife, who seems to be one of the official’s constituents, replied that other matters are more important than ending highway exemptions for EVs.
“I’m happy to pay for the highway, but I have a question about a much more fundamental matter: The Netherlands will approve the operation of Tesla FSD in February 26, a technology that has been proven to reduce accidents. The Czech Republic has the option to immediately recognize this certification. Do you plan to support this step so that we don’t unnecessarily delay?” the X user asked.
Kolovratník responded promptly, sharing his own excitement for the upcoming rollout of FSD. “I know about it. I like it and it seems interesting to me. Once we set up the committees and subcommittees, we’ll open it right away in that transport one. Thanks for the tip, I’ll deliver the report,” the official noted in his reply on X.
Kolovratník’s nod to FSD hints at the system’s potentially smooth rollout to Czechia in the coming year. With the Netherlands possibly greenlighting FSD (Supervised) in early 2026, Kolovratník’s commitment could accelerate cross-border certification, boosting FSD’s foray into Europe by a notable margin.
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Tesla FSD Supervised ride-alongs in Europe begin in Italy, France, and Germany
Swedish union rep pissed that Tesla is working around a postal blockade they started
