Tesla Faces Pressure Campaign From Activist Shareholders

The New York State Common Retirement Fund, which manages the pension plan for state employees, filed a resolution asking management to file an annual report on its efforts to prevent racial discrimination and sexual harassment. The California Department of Fair Employment and Housing sued Tesla in February after receiving what it said were hundreds of complaints from employees who said they were subject to racial slurs, assigned physically arduous work and denied transfers and promotions.

In a response to the resolution, Tesla said it did “not tolerate discrimination, harassment, retaliation or any mistreatment of employees in the workplace or work-related situations.”

Mr. Musk did not directly address the shareholder criticism when he spoke after the official part of the meeting had ended. Instead, he announced that Tesla had recently produced its three millionth vehicle and had become solidly profitable. Just 10 years ago, he said, Tesla produced only a few thousand cars and was given little chance of survival.

“I think it’s going to go up from here,” he said.

Tesla maintains that its mission is “to accelerate the world’s transition to sustainable energy.” But shareholders have become increasingly critical of other aspects of the company’s and Mr. Musk’s behavior.

Several shareholder proposals were endorsed by Institutional Shareholder Services, which advises large investors on how to vote at annual meetings. That included the proposal allowing shareholders to nominate alternate candidates to the board.

Tesla has often faced criticism that its board, whose members include Kimbal Musk, Elon Musk’s brother, has been unable to restrain the chief executive from doing or saying things that damage the automaker.

Article source: https://www.nytimes.com/2022/08/04/business/tesla-elon-musk-activist-investors.html