FOR IMMEDIATE RELEASE

MEDIA CONTACT: Sophia Wilson, swilson@asyousow.org, (341) 600-1832

BERKELEY, CALIFORNIA—JUNE 13, 2024—Today, Tesla Inc. (NYSE: TSLA) shareholders will vote on a proposal, filed by shareholder representative As You Sow, asking Tesla to adopt a deep-sea mining moratorium. Tesla has yet to take a public stand on the controversial issue of deep-sea mining, in stark contrast to peers, including BMW, Volvo, Volkswagen, Rivian, and Renault, which have each signed a moratorium. A similar proposal voted on at the General Motors shareholder meeting on June 4 received 12% support, a solid vote of support for this new issue.

The environmental impacts of deep-sea mining are of critical concern to shareholders. Several studies confirm the impacts of deep-sea mining on marine habitat will be devastating, even if performed cautiously. The dredging required to collect mineral-containing nodules removes habitat and destroys the seafloor in a highly sensitive ecosystem that may never recover. Mining the deep-sea also releases stored carbon dioxide and reduces the seafloors’ ability to absorb carbon, two externalities that would further exacerbate the climate crisis.

“There is a false perception that mining in the deep sea isn’t as harmful as terrestrial mining and is thus a more accessible supply, a perception that comes largely from the deep-sea mining industry,” said Elizabeth Levy, Biodiversity Program Coordinator at As You Sow. “Deep-sea mining is not the sustainable choice, and the industry itself hasn’t been proven to be financially viable. Tesla shareholders don’t want to see the company’s supply chain invested in an industry that’s neither sound nor sustainable.”

Deep-sea mining is not necessary to meet demand for electric vehicles. A recent BloombergNEF report found that by the end of 2025, the global battery industry will be able to produce more than five times as many cells as the world will need that year. Many companies, including Tesla, are now using battery technologies that do not require cobalt or nickel – two metals targeted in deep-sea mining. Some alternatives include sodium ion and lithium iron phosphate (LFP) batteries, which are more durable, sustainable, and cost-effective than traditional lithium-ion batteries. In early 2022, nearly half of Tesla vehicles coming off the production line contained LFP batteries; peers such as Ford and Rivian are transitioning some or all of their fleets to this technology. There are also wide-scale industry efforts to make batteries recyclable, a further disincentive to resort to deep-sea mined metals.

“The choice between yet another extractive industry and the green transition is a false one,” said Danielle Fugere, President and Chief Counsel for As You Sow. “This shareholder proposal – adoption of a moratorium on deep sea mining – offers Tesla the opportunity to solidify its standing as a leader and innovator in the electric vehicle market,while supporting a more sustainable future. In contrast, Tesla’s support, or even its perceived support, of such a destructive and unnecessary mining process will harm the company’s reputation and put it behind its peers, like Volvo, who are taking proactive steps to provide customers and regulators with information on responsibly sourced battery metals.”

Tesla shareholders have further cause to be concerned for Tesla’s reputation as Steve Jurvetson, current SpaceX Director and former longstanding Tesla director, joined the board of The Metals Company in late April as Vice Chairman of and special advisor to the CEO. The Metals Company is a deep-sea mining company with plans to expand to commercial production. Such an association could indicate support for deep-sea mining and present as a conflict of interest as Tesla considers its position on deep-sea mining.

# # # 

As You Sow is the nation’s leading shareholder representative, with a 30-year track record promoting environmental and social corporate responsibility and advancing values-aligned investing. Its issue areas include climate change, ocean plastics, toxins in the food system, biodiversity, racial justice, and workplace diversity. Click here to view As You Sow’s shareholder resolution tracker.