In Washington, Elon Musk is at the forefront of the Trump administration's efforts to develop gut programs designed to promote diversity.
At the same time, Tesla, the electric car company Musk leads, recently tried to appease critics who denounced racism with little notice.
An unclear section of the company's annual report issued on January 29th will state that its board of directors will monitor “how to maintain Tesla's outstanding talent for hiring, developing and maintaining it.” I promised.
For shareholders who have long pushed Tesla to deal with racist complaints at its Fremont, California factory, the general language is a rare occurrence that companies change their behavior in the face of criticism. It seems to represent a case.
According to some investors, the board was responsible for how the company treats its employees for the first time. It's accused of being too passive to Musk's overseer, who runs several other companies and is represented by President Trump to cut government spending.
“This is something we've been hoping for a long time,” says Kristin Hull, founder of NIA Impact Capital, an Oakland, California-based investment fund, to the board to take a more active role. A shareholder resolution was submitted in pursuit of this.
In another letter to stock market regulators, Tesla acknowledged it was responding to criticism from Dr. Hal and other shareholders. Last year, the company, which accounted for almost half of the electric vehicles sold in the US, was sued by California's Civil Rights Office for what government agencies called “populated racism and harassment.” Black Tesla employees also filed a lawsuit.
Tesla denied it was engaged in discrimination and challenged the lawsuit, but in March it resolved a lawsuit filed by a black worker who won a juju Award against Tesla. I did.
Workers at Fremont Factory complain that they are exposed to racial slander and racist images. State agencies also reported that workers were given more physically laborious jobs and refused to be transferred or promoted more frequently than other workers.
The company did not respond to requests for comment.
Dr. Hal said it is “irony” that Tesla appears to be strengthening its efforts to promote workplace equality, whether Musk is attacking diversity, equality and inclusion, or DEI programs. Ta. He often attacks diversity efforts with X and makes false and misleading claims about them.
There are also indications that Musk's political views and his close ties with Trump and other right-wing political leaders have hurt Tesla's sales. Electric vehicle buyers tend to be more liberal than Musk and his political allies. Tesla sales in Germany plummeted 59% in January compared to the same month last year after Musk approved a nationalist party.
Research shows Musk's politics encourages some U.S. car buyers to choose other brands. According to the California New Auto Dealer Association, where former Vice President Kamala Harris won in November, new Teslas registrations fell 12% last year. California accounts for almost a third of all electric vehicles sold in the US.
Dr. Hal said that the Tesla board is vague about how directors monitor working conditions, but has established legal obligations to shareholders.
“Is it specific enough or is it detailed enough? No,” she said. “But that's far more than we expected from Tesla.”
At Tesla's next annual meeting, NIA Impact asked investors to report on how and how the Compensation Committee will consider the company's human capital management practices. We will withdraw the resolutions that we plan to present in.
Two other investors, Amalgamate Bank and Proxy Impact, resonated the proposal. Both companies are urging companies to make employment more comprehensive.
“We look forward to more clear information to acknowledge the need for further disclosure from the Compensation Committee on Human Capital Management,” Proxy Impact CEO Michael Passfe said in an email. I mentioned it.
Last month, the pledge of Tesla's committee to pay attention to personnel matters was a direct response to the NIA Impact resolution.
After receiving the proposed resolution, the letter said that management and board members had decided to include “additional disclosures regarding the oversight of the Compensation Committee's human capital management practices.” The letter sought permission from regulators to remove resolutions from shareholder meetings, claiming that “the company has already implemented the proposal effectively.”
Tesla has opposed similar proposals over the past few years.
Chang did not respond to requests for comment.
Her letter said the Compensation Committee's Charter is already seeking it to oversee “how companies employ, develop and retain diverse talent.”
However, the annual report does not mention diversity, referring only to the goal of recruiting “excellent” talent.
Dr. Hal equated excellence with diversity, but added, “I want to know more about what Tesla sees as 'excellent'.”
