Tesla Inc is facing a shareholder resolution to commit to a moratorium on sourcing minerals from deep sea mining (DSM), which is considered environmentally destructive and unnecessary for substantial electric vehicle deployment. The resolution, set for a vote at the annual meeting on June 13, 2024, is backed by As You Sow, an advocacy group that has submitted written materials voluntarily for public disclosure. The resolution highlights the irreversible damage DSM poses to marine ecosystems, the availability of alternative battery technologies that do not require deep sea minerals, and the reputational, regulatory, and financial risks Tesla could face by not committing to the moratorium. Tesla's peers in the auto manufacturing industry, including BMW, Polestar, Renault, Rivian, Scania, Volkswagen, and Volvo, have...Show More

Tesla Inc is facing a shareholder resolution to commit to a moratorium on sourcing minerals from deep sea mining (DSM), which is considered environmentally destructive and unnecessary for substantial electric vehicle deployment. The resolution, set for a vote at the annual meeting on June 13, 2024, is backed by As You Sow, an advocacy group that has submitted written materials voluntarily for public disclosure. The resolution highlights the irreversible damage DSM poses to marine ecosystems, the availability of alternative battery technologies that do not require deep sea minerals, and the reputational, regulatory, and financial risks Tesla could face by not committing to the moratorium. Tesla's peers in the auto manufacturing industry, including BMW, Polestar, Renault, Rivian, Scania, Volkswagen, and Volvo, have already supported a DSM moratorium. The resolution urges Tesla to either commit to the moratorium or disclose its rationale for needing deep sea materials, emphasizing the potential harm to Tesla's reputation and market share if it continues to be associated with DSM. The Tesla Board of Directors has opposed the resolution, citing their responsible sourcing policies and the complexity of supplier relationships.