Tesla rewards Elon Musk’s reality-distortion field

Tesla Rewards Elon Musk’s Reality-Distortion Field

The most remarkable event at Tesla’s annual shareholder meeting on Thursday was not Elon Musk securing an almost $1 trillion pay package — a result expected due to his vast holdings and popularity among retail investors. Instead, the key moment came when shareholders, many in Tesla-themed attire and enjoying the company’s signature lo-fi music, reacted negatively to a proposal by New York State Comptroller Thomas DiNapoli.

Controversial Proposal Rejects Shareholder Lawsuits

The proposal aimed to repeal a new bylaw that effectively prevents ordinary shareholders from suing Tesla. Despite concerns, the Tesla board recommended voting against it, consistent with their stance on nearly all accountability-related proposals presented over the years.

Repeated Shareholder Support for Management

Numerous times, pension fund managers, human rights advocates, and individual investors have offered shareholders the chance to enforce basic controls over Tesla’s practices. These include attempts to address child labor risks in the supply chain or tie executive compensation to sustainability measures.

Each time, shareholders have sided with the board and Elon Musk, dismissing these efforts.

“Shareholders side with the company’s board — or more accurately, with Musk — and reject them.”

This pattern reveals strong shareholder loyalty to Musk’s leadership, even at the cost of limiting corporate accountability.

Author’s summary: Tesla shareholders repeatedly prioritize Musk's control over accountability efforts, endorsing his power consolidation despite proposed governance reforms.

The Verge — 2025-11-07