The US Securities and Exchange Commission's corporate finance department said on Tuesday that if Tesla runs a voluntary program as described and allows retail shareholders to give “standing instructions” — voting as recommended by Tesla's board of directors unless otherwise specified — the department will not recommend enforcement action. This unobjection letter isn't just about Tesla: it's written in the form of a “framework,” and the SEC clearly stated in the letter that “this position applies to any issuer that operates the program in the same way.” In other words, Tesla got the template, and other companies could copy it. The letter was submitted by Tesla General Counsel Brandon Earhart and Sullivan Cromwell Law Firm on September 29, and the SEC M&A Office approved it on the same day; a footnote to the letter explains the speed of “ask the same day, approve the same day” — the two sides had previously been communicating about this for several months.

The US Securities and Exchange Commission's corporate finance department said on Tuesday that if Tesla runs a voluntary program as described and allows retail shareholders to give “standing instructions” — voting as recommended by Tesla's board of directors unless otherwise specified — the department will not recommend enforcement action. This unobjection letter isn't just about Tesla: it's written in the form of a “framework,” and the SEC clearly stated in the letter that “this position applies to any issuer that operates the program in the same way.” In other words, Tesla got the template, and other companies could copy it. The letter was submitted by Tesla General Counsel Brandon Earhart and Sullivan Cromwell Law Firm on September 29, and the SEC M&A Office approved it on the same day; a footnote to the letter explains the speed of “ask the same day, approve the same day” — the two sides had previously been communicating about this for several months.