Tesla is at risk of violating Texas corporate law by failing to schedule its annual shareholder meeting before a July 13 deadline, raising alarm among major investors. Since reincorporating in Texas in 2024, Tesla has been required by state law to hold its Annual General Meeting (AGM) within 13 months of the previous one.
In a letter obtained by Business Insider, a group of 27 institutional investors — managing a combined $1.5 trillion in assets — urged Tesla to announce a meeting date and ensure shareholders have “sufficient time and information” to participate. Signatories include pension funds and treasurers from New York, Oregon, and Maryland, along with international investment groups.
“This lack of transparency raises serious concerns about the company’s respect for shareholder rights,” the letter said, criticizing Tesla’s silence as the legal deadline nears.
Kevin Thomas, CEO of the Shareholder Association for Research and Education, emphasized the urgency: “We’re concerned about falling global sales, declining stock performance, and the CEO’s attention span.”
Tesla has not responded publicly, and failure to meet the July 13 deadline could prompt legal action. Under Texas law, courts in Travis County — home to Tesla’s Gigafactory — may mandate the meeting if the company fails to act.
Thomas added, “Shareholders shouldn’t have to rely on courts to enforce basic rights. Now is the time to intervene.”