SEC clears Tesla's opt-in system for retail investors to vote with board

SEC staff issued a no-action letter saying it would not recommend enforcement if Tesla follows its plan for opt-in retail voting. Investors who sign up will have their shares follow the board's recommendation at each meeting. They will still receive every voting packet. Investors can override individual votes or leave the program at any time without charge. They can exclude contested board elections and mergers from automatic voting. Tesla must send yearly reminders. Broadridge data cited in Tesla's request show retail investors voted 28% of their shares in 2025. Institutions voted 76.6% of their shares. Tesla said it spent over $2 million on proxy solicitors across its last two annual meetings. Norway's sovereign wealth fund voted against Musk's pay deals twice. Robinhood CEO Vlad Tenev said the brokerage worked with Tesla on the program and supported making shareholder voting easier. ExxonMobil used the model first after a September 2025 SEC letter. ExxonMobil had signed up more than 100,000 shareholders by March 2026. New York City Comptroller Mark Levine called ExxonMobil's version a 'blank check' for board recommendations in a May 2026 filing. Levine argued that investors deserve options beyond automatic support for management. Tesla's filing gives no date for when sign-ups will open.