Tesla’s 2024 Annual Stockholders’ Meeting brought significant changes as stockholders overwhelmingly approved key proposals, officially making Tesla a Texas corporation. This move, ratified on June 13, 2024, marks a new chapter for the electric vehicle giant, redomesticating the company from Delaware to Texas. The meeting also saw the reaffirmation of the 2018 CEO Performance Award for Elon Musk, alongside other critical decisions shaping Tesla’s direction for 2024 and beyond.
Key Approvals at the 2024 Annual Meeting
Several Tesla proposals received strong stockholder support during the meeting. The election of Class II directors, James Murdoch and Kimbal Musk, for another three-year term was approved, ensuring continuity in Tesla’s board leadership. Executive compensation received a non-binding advisory approval, indicating stockholder confidence in the company’s current compensation strategies. Crucially, the redomestication of Tesla to Texas was also approved, solidifying the company’s operational base in the state. Furthermore, the ratification of the 2018 performance-based stock option award to CEO Elon Musk, a subject of considerable discussion, was also passed. Finally, the appointment of PricewaterhouseCoopers LLP as Tesla’s independent registered public accounting firm for the fiscal year ending December 31, 2024, was also ratified.
Stockholder Proposals and Voting Outcomes
While Tesla’s proposals largely sailed through, the stockholder proposals presented a mixed bag of results. Proposals recommending the reduction of director terms to one year and the adoption of simple majority voting provisions surprisingly passed, despite board recommendations against them. However, proposals concerning annual reporting on anti-harassment and discrimination efforts, adoption of a freedom of association and collective bargaining policy, reporting on effects and risks associated with electromagnetic radiation and wireless technologies, adopting targets for sustainability metrics in executive compensation, and committing to a moratorium on sourcing minerals from deep sea mining were all voted down, aligning with the board’s recommendations.
Tesla in Texas: Looking Ahead
The successful vote to redomesticate Tesla to Texas in 2024 is a landmark event for the company. As Tesla officially becomes a Texas corporation, the focus will be on leveraging this new corporate structure and continuing its innovation in the electric vehicle and sustainable energy sectors. Further details regarding the vote tabulations will be available in a Form 8-K filing with the Securities and Exchange Commission. For investor-related inquiries, Tesla has provided contact information at [email protected].
