Tesla Rewards Elon Musk’s Reality-Distortion Field
The highlight of Tesla’s annual shareholder meeting was not Elon Musk securing an extraordinary pay package nearing $1 trillion, which was expected due to his popularity and voting power from his large holdings.
The more revealing moment came when shareholders, many dressed in Tesla-themed attire and enjoying the company’s lo-fi music, booed a proposal by New York State Comptroller Thomas DiNapoli. The proposal sought to repeal a recent bylaw that effectively blocks regular shareholders from suing the company.
Tesla’s board recommended voting against this measure, consistent with their longstanding opposition to accountability efforts. Pension fund managers, human rights advocates, and individual investors repeatedly propose modest actions to curb Tesla’s worst practices, such as preventing child labor in its supply chain or linking executive pay to sustainability goals.
However, shareholders consistently side with the board—and ultimately with Musk—rejecting these initiatives.
“Shareholders joyfully vote to dilute their own holdings to the benefit of Musk’s power grab.”
This dynamic reflects a loyalty to Musk’s leadership and a tolerance for the company's governance style despite ongoing calls for increased responsibility.
Author’s summary: Tesla’s shareholders repeatedly support Elon Musk’s control at the expense of accountability, dismissing efforts to increase corporate responsibility despite growing concern over governance and ethics.