Overview
- Investor Jay Butera filed a proposal asking Tesla to adopt political neutrality that would bar executives from public endorsements, statements and contributions tied to parties or candidates.
- Board chair Robyn Denholm’s panel recommended shareholders vote against the measure and told the SEC the rule would chill free speech and be impossible or unlawful to enforce.
- The SEC request to exclude the proposal from Tesla’s November annual-meeting proxy remains pending, leaving the measure’s path to a vote uncertain.
- Retail holders have pressed the company for over a year about Elon Musk’s political activity, as California Tesla registrations fell 18% in the first half of 2025, with academic research linking political stances to shifts in consumer demand.
- Coverage cites Musk’s high-profile political role and reported spending exceeding $250 million on a pro-Trump super PAC, while separate reports describe a proposed compensation plan that could reach $1 trillion.