The coalition includes state treasurers, pension funds, and governance experts.

They warn that Tesla is close to violating Texas law, which requires such a meeting to be held within 13 months of the previous one, which took place in June 2024.

The request coincides with growing investor unease over Tesla’s falling stock—down approximately 27% so far this year—and a troubling 13.5% drop in vehicle deliveries in Q2. These declines continue a broader trend; Tesla posted its first-ever annual sales drop in 2024, and its Q2 numbers mark a second consecutive quarter of declines.

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Shareholders also highlight concerns over Musk’s increasing political involvement—most notably his friction with former President Trump and his decision to form a new political party—and fear it could distract leadership from stabilizing Tesla’s performance.

In April, Tesla postponed its proxy statement and confirmed a special committee was reviewing Musk’s compensation package. Last year’s shareholder-approved $56 billion pay deal has since been overturned by a Delaware court.

In response to investor pressure, Tesla has scheduled the meeting for November 6, 2025—just two days before Tesla would risk legal exposure under Texas statutes. The deadline was also issued for July 31. After the announcement, the shares rose modestly.

Overall, Tesla is grappling with declining sales and stock prices, tightening legal timelines, and intensifying scrutiny of executive behavior and governance.