It’s that time of the year, where Tesla shareholder will get the chance to vote on several proposals that will help steer the company over the next year, and further into the future.
The 2020 Annual Shareholder Meeting will be held on July 7, 2020 at the Computer History Museum in Mountain View, California. Due to the ongoing COVID-19 pandemic, there will also be a virtual session broadcast live over the internet.
The agenda for the meeting, which was outlined in the filing with the Securities and Exchange Commission on May 28, is fairly standard, and shareholders will get to vote on things like electing new directors and approving executive compensation packages.
But one proposal stands out as being interesting, as it covers a topic that has come up several times, including at last year’s meeting.
A stockholder proposal regarding paid advertising, if properly presented (“Proposal Four”). – Board vote recommendation – “AGAINST”
Elon Musk has not been shy about showing his disdain over the years for paying for advertising. At the 2019 Annual Shareholder Meeting, one of the questions posed to Musk during the Q/A session was about advertising, and whether Tesla has a plan to improve marketing communications to help battle the misinformation that is prevalent in mainstream media. You can see the segment below.
Musk has said several times in the past that it doesn’t make sense to pay for advertising when they are able to sell every car they make, and then some. Instead of paying for advertising, he would rather put that money towards developing a better product.
Based on the response last year, along with the Board’s recommendation to vote AGAINST, it will be a surprise if this motion passes at the meeting.
If you were a shareholder at the close of the day on May 15, 2020, you are eligible to attend and cast your votes at the meeting.
You can read the full details of the meeting in the SEC filing.