Tesla’s Delayed AGM Draws Investor Heat Amid Musk’s Political Detour And Missed EV Targets

A group of 27 major Tesla shareholders, including U.S. state treasurers and pension funds, has called on the EV maker’s board to schedule its 2025 annual shareholder meeting, warning the company is nearing a legal deadline and highlighting growing governance concerns.

Tesla’s last annual meeting was held in June 2024, Reuters reported, citing a letter from the state treasurers, pension funds, and governance experts.

Under Texas law, companies are required to hold such meetings within 13 months or face potential legal action by shareholders. 

Tesla previously said in April it would delay filing its proxy due to unresolved board matters, including a special committee reviewing CEO Elon Musk’s compensation.

Adding to the pressure, Wedbush analyst Dan Ives on Tuesday urged the board to set clear boundaries for Musk’s time and political involvement following his recent announcement to launch a political party. 

Ives described this as a “tipping point” and recommended a revised compensation package that would grant Musk 25% voting control, establish time allocation conditions, and provide oversight of his political activity. 

He said that Tesla is entering a critical phase with autonomy and robotics, and cannot afford further distractions.

Meanwhile, Ark Investment Management CEO Cathie Wood expressed continued confidence in the board, saying it has navigated Musk-related controversies before. 

She noted Musk is now overseeing Tesla’s sales in the U.S. and Europe and appears “much less distracted.”

Operationally, Tesla is facing its first consecutive yearly decline in deliveries. Its first quarter deliveries fell 13% year-over-year to 336,681 units. In 2024, Tesla delivered 1.79 million vehicles, representing a decrease of approximately 1% from 2023.

Although Tesla had projected a return to growth in 2025, the first two quarters and the loss of federal tax credits on key models have weighed on momentum. 

Analysts, including RBC Capital’s Tom Narayan, are now pinning hopes on the long-promised affordable vehicle. Tesla had aimed to begin production in the first half of 2025, but with no launch by the end of the second quarter, those plans appear delayed.

On Stocktwits, retail sentiment for Tesla was ‘extremely bearish’ amid ‘high’ message volume.

Tesla’s stock has declined 22% so far in 2025.

See also: Elon Musk-Led Tesla Urges Buyers To Take EV Deliveries Before Sept 30 After Trump Administration Kills $7,500 Tax Credit

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