A Tesla Inc. TSLA investor is calling for the company to adopt a stance of political neutrality after the EV giant proposed a $1 trillion pay package for its co-founder and CEO, Elon Musk.
Check out the current price of TSLA stock here.
The Proposal
Jay Butera, a longtime climate-change advocate and investor, submitted a proposal to the Tesla board urging them to refrain from political endorsements and activities, according to Fortune.
Butera, who has been investing in Tesla since its IPO in 2010, believes that the company’s focus should remain on its mission of promoting electric transportation and renewable energy. He argues that political involvement could hinder this mission and alienate customers and regulators.
‘Elon Musk Is A Technical Genius…’
“Elon Musk is a technical genius and I believe his enthusiasm and passion have enabled him to do things that no one else could do, so it’s not surprising that his interest in politics was larger than life,” said Butera.
“We can’t afford to do anything at any level in the company that alienates customers, alienates government officials, or alienates regulators, whether it’s here or abroad.”
See Also: Elon Musk Says Tesla’s ‘Master Plan Part Deux’ Done Next Year, Promises Simpler, Concise Part 4
Tesla’s Challenges
The proposal comes as Tesla faces challenges with sales and innovation amid a slowdown in consumer spending. The Tesla board, led by Robyn Denholm, has opposed Butera’s proposal, citing concerns over free speech and the difficulty of enforcing such a policy.
Retail investors have repeatedly raised concerns about Musk’s political activities, which have sparked boycotts and negative headlines. The board has recommended voting against the proposal, and its request to exclude it from the proxy statement is pending with the Securities & Exchange Commission.
Butera’s proposal highlights the tension between Musk’s political involvement and Tesla’s business interests, as evidenced by declining Tesla sales in politically liberal areas like California.
Tesla Under Scrutiny
The call for political neutrality from the Tesla investor comes at a time when the company’s leadership is under scrutiny. Recently, the Tesla board unveiled a plan for Musk, which could potentially make him a trillionaire if the company achieves ambitious market capitalization targets.
This compensation plan underscores the board’s intent to retain Musk, despite the controversies surrounding his political engagements.
Additionally, Tesla has emphasized the importance of retaining Musk amid uncertainties over previous compensation packages. Musk’s influence on Tesla is significant, as he has expressed concerns about losing control of the company due to activist shareholders, as reported in recent statements.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Read Next:
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Mijansk786 / Shutterstock.com
Market News and Data brought to you by Benzinga APIs
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.