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Tesla (TSLA) board recommends shareholders vote against employee unionization

Tesla's annual shareholder meeting is coming up and the company is urging investors to vote against employees' rights to form a union.

Image: Tesla
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Tesla's annual meeting of shareholders will be held on August 4, 2022, and proxy voters are allowed to vote online up until August 3. The company's board of directors has issued some recommendations for shareholders, including board recommendations to vote against a stockholder proposal regarding adoption of a freedom of association and collective bargaining policy. To put it simply, the board is asking shareholders to vote against Tesla employees having the right to form a union. 

Tesla CEO Elon Musk may be in a lawsuit over his $44 billion Twitter deal, but he still has time to use the social media platform to manipulate TSLA investors.

Here's a list of every stockholder proposal the company wants shareholders to vote against:

  • Stockholder proposal regarding annual reporting on anti-discrimination and harassment efforts.
  • Stockholder proposal regarding annual reporting on Board diversity.
  • Stockholder proposal regarding reporting on employee arbitration.
  • Stockholder proposal regarding reporting on lobbying.
  • Stockholder proposal regarding adoption of a freedom of association and collective bargaining policy.
  • Stockholder proposal regarding additional reporting on child labor.
  • Stockholder proposal regarding additional reporting on water risk.

That's right. Tesla does not want to issue reports on employee arbitration, anti-discrimination and harassment efforts, Board diversity, lobbying, child labor, water risk, and the ability for employees to explore forming a union.

Tesla Berlin-Brandenburg Gigafactory.
Tesla's Gigafactory in Germany has drawn the ire of locals who worry about the effects on the nearby water supply.
Source: Image: Tesla

While many Tesla (TSLA) investors believe that the company only does good in the world, it is pretty clear that the board of directors does not want to disclose all elements of the company's potentially dark underbelly. 

Tesla shareholders have a chance to send a message to Elon Musk and the board of directors with this upcoming vote at the annual meeting, but many of the company's most loyal followers will do whatever the egomaniacal CEO asks of them.

Musk's tweet asking investors to "vote your shares with Tesla" may seem innocuous on the surface, but what that means becomes more clear after reading the board recommendations. Elon Musk and Tesla's board do not want employees to unionize, and would like to keep a number of problematic issues in the shadows.


This article is only meant for educational purposes, and should not be taken as investment advice. Please consider your own investment time horizon, risk tolerance, and consult with a financial advisor before acting on this information.

Full Disclosure:

At the time of this article, Shacknews primary shareholder Asif A. Khan, his family members, or his company Virtue LLC had the following positions:

Long Tesla via TSLA shares

Luminary

Asif Khan is the Luminary and majority shareholder of Shacknews. He began his career in video game journalism as a freelancer in 2001 for Tendobox.com. Asif is a CPA and was formerly an investment adviser representative. After much success in his own personal investments, he retired from his day job in financial services and is currently focused on new private investments. His favorite PC game of all time is Duke Nukem 3D, and he is an unapologetic fan of most things Nintendo. Asif first frequented the Shack when it was sCary's Shugashack to find all things Quake. When he is not immersed in investments or gaming he is a purveyor of fine electronic music. Asif also has an irrational love of Cleveland sports.

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