2022 Tesla Shareholder Meeting Result: Buybacks on the Table, Split Approved

Market Rebellion

This article was last updated on 08/04/2022.

cyber roundup

Cyber Roundup

8/4 UPDATE: The Cyber Roundup has concluded.

CYBER ROUNDUP RESULTS; QUICK LOOK:

  • Tesla’s annual shareholder meeting has concluded
  • 3-for-1 stock split approved
  • Shareholders voted in line with the company on most proposals
    • Shareholders voted to re-elect two board members
    • Shareholders voted against a company proposal to limit director terms to two years
    • All other proposals failed, including one to release reports on antiharassment and discrimination efforts.
  • Elon says:
    • “Buybacks are on the table depending on future cash flow.”
    • Tesla has “the highest operating margin in the entire industry”,
    • “I think we’re going up from here” – Intentionally ambiguous?
    • “Tesla is as much a software company as it is a car company”
    • “EVs take market share from gasoline cars, not other EVs” in relation to criticism that other companies producing electric vehicles will take market share from Tesla.
    • “Every time our competitors advertise electric vehicles, our sales go up.”
    • “Model Y is tracking to be the highest selling unit by revenue this year”
    • “I believe Tesla will be the most valuable company in the world.”
    • “I only own two pubically traded securities – Tesla and Twitter.”

As a shareholder, you want a CEO who is excited about their company. And Thursday night, Elon Musk sounded excited – no – downright bullish on Tesla (TSLA), at one point saying:

When you see people panicking and saying, “Oh man, my stock has gone down”, No, that’s a buying opportunity.

Telling people to buy the dip in Tesla… what could go wrong? It’s not like Elon has ever caught the SEC’s attention before.

That said, in the afterhours market, the stock hasn’t yet dipped or pumped – the stock is still trading within 0.3% of where it closed the day at. Though, if index futures stay as green as they are right now, who knows what will happen tomorrow.


Tesla’s 2022 Shareholder Meeting — dubbed the “cyber roundup” is set to kick off tonight, at 5:30PM EST. You can view the event live from this link. Due in part to CEO Elon Musk’s chaotic nature, this will likely be far from the typical drab shareholder meeting. 

Maybe he’ll even break out some new dance moves.

But for investors in Tesla’s exceptionally volatile stock, this is a high-stakes meeting. Investors will be asked to vote on several measures — the most anticipated of which being the 3-for-1 stock split (which is all but guaranteed to pass). 

However, several under-the-radar proposals are also on the agenda. Shareholders will be asked whether or not to re-elect two venture capitalists to Tesla’s board, as well as several diversity-based proposals, and one that asks Tesla to report on its progress toward cobalt-free batteries (a hot-button issue that closely ties to child-labor).

 

Unusual Options Activity


Shareholder Questions to be Addressed

 

After the vote, Musk will answer a series of questions asked by Tesla (TSLA) shareholders through a channel on the “say” app. You can find that channel, featuring the questions, and their share representation here. Check out 8 of the top questions:

  • How does Tesla plan to utilize cash in the coming few years? Will Tesla increase CapEx, share buybacks, dividends, or acquisitions? 

This question is also asked in another form on the 14th highest question. While a stock-split may give shares of Tesla a temporary pump, news that Tesla plans to one-day buyback shares, offer a dividend, or acquire a company could add material value to the company or provide support to its often erratic share price.

  • How many factories are necessary to achieve a long-term target of 20M vehicles/year? 

A large part of Tesla’s lofty valuation is based on the assumption that Tesla’s growth rate will continue to increase exponentially. This is part of the thesis of Tesla’s most bullish investors, including Cathie Wood, Gary Black, Gene Munster and more. This production based question will help analysts — both bearish and bullish — to determine how realistic those growth prospects are.

  • When will Cybertruck pricing be released? When the pricing is released, will all who ordered before it was taken down be grandfathered in or have to reconfigure? 

Several more questions about the Cybertruck, its final design, and additional details are also listed in the Say channel further down.

  • How is Tesla viewing the geopolitical risk between the US and China? 

This is an interesting question to ask during a tumultuous time for US-Chinese relations. As Speaker of the House Nancy Pelosi returns to the US, China’s government has threatened the US with serious consequences for her trip to Taiwan. Tesla has thus far maintained a favorable relationship with China, where it expects to grow substantially, and where its vehicles have received mass-adoption from the public. This is likely due, in part, to Tesla not speaking out negatively about the Chinese government in any way throughout its time as a business.

  • What is the real estate strategy for Superchargers and Tesla restaurant locations across the US? 

Yeah, Tesla restaurants. It’s a thing.

https://twitter.com/elonmusk/status/949831212326993920?lang=en

 

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  • With peak inflation behind us, are you now seeing recession as a challenge sometime in 2023? If yes, beyond layoffs, how is Tesla preparing for it? 

Tesla CEO Elon Musk has been outspoken in 2022 about his belief that the US will likely enter “at least a mild recession” at some point in the future. With recessionary fears starting to quell and the yield curve still inverted, shareholders may find it interesting to see if his take has changed at all — and if so, how that will impact the company. 

  • When will the Semi be available? 

The Tesla Semi-Truck is yet another important piece to Tesla’s future growth outlook — particularly autonomous ones. If Tesla can give a positive outlook for the roll out of these Semi’s, bulls believe that they will eventually be able to supplant the long-haul trucking industry. On the other hand, some bears have cited faults in Tesla’s auto-pilot software, and criticism about how many jobs that would ultimately be removed from the market remains to be addressed. Though, AI and the mass-loss of jobs are like a guitar and its strings — you really can’t have one without the other. 

  • What impacts will the upcoming EV tax credit for 2023 have on the demand and pricing of Tesla vehicles? 

This question may provide some insight into demand expectations in the coming year, but it’s not likely to come without some continued criticism of ESG policies laced in-between the lines.

The Bottom Line


Each of these questions, the potential looming stock split, additional proposals, and any other colorful commentary Elon Musk makes during the Cyber Roundup will likely have big implications on Tesla’s stock price. But we’ll be updating this article to cover it all. So, check back in tomorrow morning for updates about the results of the meeting and any additional effects it has on Tesla’s share price. 

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