Tesla (TSLA) shares have skyrocketed by more than 1,400% over the past three years, but that doesn’t mean its shareholders are entirely happy with the company’s management.
There’s a growing shareholder revolt around Tesla’s handling of employees, diversity, and its board of directors that played out at its most recent company meeting.
If it weren’t for Elon Musk’s control of 22% of the company’s stock, four out of five shareholder resolutions would have passed at the annual meeting despite the opposition of Tesla’s board, according to Morningstar research.
In addition, board member James Murdoch would nearly have lost his seat without Musk’s votes. The level of support for shareholder proposals, and opposition to management’s stance, seen at Tesla this year is “rare” says Jackie Cook, Morningstar’s director of investment stewardship research, “even under circumstances where an insider doesn’t control a large chunk of the vote.”Tesla’s Growing Investor Revolt | Morningstar