In Washington, Elon Musk is at the forefront of Trump’s management efforts for intestinal programs aimed at promoting diversity.
At the same time, Tesla, the electric car company driven by Mr Musk, has in recent days, with little notice, has tried to calm critics accusing the company of racial discrimination.
In a minimum part of the company’s annual report published on January 29, its Board of Directors promised to monitor “how Tesla hires, develops and maintains excellent talent”.
For shareholders who have long pushed Tesla to face racism complaints at its factory in Fremont, California, the general wording appeared to represent a rare case of the company’s changing behavior in view of criticism.
For the first time, the Board of Directors assumes responsibility for how the company is facing employees, some investors said. He has been accused of lawsuits of being overly passive in the supervision of Mr Musk, who manages several other companies and has been replaced by President Trump to reduce government spending.
“This is something we have wanted for a long time,” said Kristin Hull, the founder of Nia Impact Capital, an investment fund based in Oakland, California, who has submitted resolution of shareholders calling on the Board of Directors to take on a more active role.
Tesla acknowledged in a separate letter to the stock market regulators that it responded to criticism by Dr. Hulll and other shareholders. The company, which represented almost half of the electric cars sold in the United States last year, has been set by the California Political Rights Department for what the organization called “widespread racial discrimination and harassment”. Tesla’s black employees have also filed lawsuits.
Tesla denied that she has been discriminated with and questioning the lawsuits, but in March, a case was resolved by a black worker who had won the jury award against Tesla.
Fremont Factory workers have complained that they have undergone racial and racist images. A government agency also said that the workers reported that they were given more natural difficult tasks and refused transportation and promotions more frequently than other workers.
The company did not respond to a request for comments.
Dr. Hull said it was “ironic” that Tesla appeared to enhance her efforts to promote work equality, even when Mr Musk attacks diversity, equality and integration or Dei. It often attacks the diversity efforts on X, making false and misleading claims for them.
There is also evidence that Mr Musk’s political views and his close relationship with Mr Trump and other Right-Wing political leaders hurt Tesla’s sales. Electric car buyers tend to be more liberal than Mr Musk and his political allies. Tesla’s sales in Germany plunged 59 % in January, compared to the same month last year, after Mr Musk approved a nationalist political party.
Research has shown that Mr Musk’s policy urges some US car buyers to choose other brands. In California, which former Vice President Kamala Harris won in November, New Teslas’s entries declined by 12 % last year, even when total sales of electric cars and trucks increased slightly, according to the California new cars. California represents almost one third of all electric vehicles sold in the United States.
Dr. Hull said that while the Tesla Council was unclear for how directors would monitor working conditions, it set a legal obligation for shareholders.
“Is it quite specific or quite detailed? No, “he said.” But he’s much more than we expected from Tesla. “
NIA’s impact will withdraw a resolution planning to present at Tesla’s next annual meeting calling on the Board of Directors to “report to investors on how and how often the Compensation Committee is considering the company’s human capital management practices” Dr. Hull.
Two other investors, merged banks and an attorney, forgiven the proposal. Both businesses push companies to be more comprehensive to recruit.
“Recognizing the need for greater disclosure by the Compensation Committee on Human Capital Management is a good first step and we look forward to clearer information,” said Michael Passoff, CEO of Proxy Impact.
The promise of Tesla’s Board of Directors to pay more attention to human resources was an immediate response to Nia Impact’s resolution, according to a letter that Xuehui Cassie Zhang, Tesla’s partner, Associate of the General Councilor who was sent to the Securities and Exchange Commission last month.
After receiving the proposed resolution, the letter stated that the administration and members of the Board of Directors decided to include “additional notifications on the supervision of the Compensation Committee for the Company’s Human Capital Management Practices”. The letter asked the regulators for permission to exclude the resolution from the shareholder meeting, arguing that “the company has already implemented the proposal”.
Tesla opposed similar proposals in previous years.
Ms Zhang did not respond to a request for comments.
Her letter noted that the Charter of the Compensation Committee has already asked to oversee “how the company hires, develops and maintains different talents”.
However, the annual report did not mention diversity, referring only to the goal of recruiting “exceptional” talents.
Dr. Hull said he equals excellence with diversity, but added: “I would like to know more about what Tesla sees as” excellent “.
