Tesla shareholders urge Board to take legal action against misleading media reports

Misleading reports about Tesla and its leadership have pretty much been the norm for a very long time, but a number of TSLA shareholders are drawing the line in the sand. 

As per the shareholders in a letter to the Tesla Board of Directors, now is the time to hold news media outlets that publish misleading reports about the electric vehicle maker accountable.

The trigger:

• Last week, a Tesla Cybertruck loaded with explosives was detonated in front of a Trump hotel in Las Vegas. The vehicle’s driver died and seven others were injured.
• Elon Musk quickly clarified on X that the incident was the result of explosives that were detonated from the bed of the Cybertruck. Thus, the explosion was not in any way related to a fault in the all-electric pickup. 
• Authorities later credited the Cybertruck for containing the explosion and preventing more damage in the area.
• Despite this, news reports about the incident framed the narrative as a Cybertruck explosion killing one person.
• Some headlines included “1 dead after a Cybertruck explodes outside Trump Hotel in Las Vegas,” “Tesla Cybertruck explodes outside Trump Las Vegas Hotel, killing driver,” and “Tesla Cybertruck explosion in front of Trump Hotel in Las Vegas leaves 1 dead, 7 injured.”

Maybe it is time to do so https://t.co/2i4q5QZOUn

— Elon Musk (@elonmusk) January 2, 2025

Musk’s comments:

• Amid complaints from users on X and some Tesla shareholders that the story of the Cybertruck’s detonation was being misrepresented, Elon Musk mused that perhaps it is time for the electric vehicle maker to take legal action against media outlets that seemingly sabotage Tesla.
• “Maybe it is time to do so,” Musk wrote in a response to X user Robby Starbuck, who called out the headlines about the incident.

Tesla shareholders’ letter:

• Tesla shareholders have supported the idea of holding news outlets accountable. 
• In a letter, the shareholders called on the Board of Directors to file legal action against media outlets that misrepresent Tesla news. 
• Following is the TSLA shareholders’ letter: 
  • Dear Members of the Board:
  • As concerned Tesla shareholders, we are writing to express our deep concern regarding what appears to be a pattern of materially misleading press coverage about Tesla, its products, and operations. We believe these articles are negatively impacting shareholder value and warrant the Board’s attention.
  • Of particular concern are recent articles regarding the criminal event where firework mortars and camp fuel canisters exploded in the bed of a Cybertruck in Las Vegas. The reporting contained numerous apparent inaccuracies. These three articles were the most mentioned by us shareholders with regards to inaccurate reporting:
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  • These and other major media outlets have often published articles containing factual inaccuracies about Tesla’s business operations, product capabilities, and market position.
  • While we all fully support and value press freedom, we believe there is a clear distinction between protected speech and demonstrably false statements that harm shareholder interests and our company.
  • We respectfully request that the Board commissions an independent analysis of recent press coverage to identify potentially actionable cases of material misrepresentation and evaluates potential legal remedies available to protect shareholder interests. We understand that engaging in legal action against press outlets requires careful consideration of multiple factors, including First Amendment protections, litigation costs, and potential public relations implications. However, we believe the Board has a fiduciary duty to evaluate all available options to protect shareholder interests when faced with demonstrably false information that may be damaging to the company’s value.
  • We would appreciate the Board’s consideration of these concerns and look forward to hearing your response on how Tesla plans to address this issue moving forward.
  • Sincerely,
  • Tesla Shareholders

Ok

— Elon Musk (@elonmusk) January 3, 2025

• Tesla CEO Elon Musk has seemingly supported the shareholders’ efforts, responding with a short “Ok” on X.

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