Tesla Inc. should terminate participation in Computershare’s Direct Stock Purchase and Dividend Reinvestment Plan known as “Computershare DirectStock”.
When our registered investors enroll in Computershare DirectStock, the act of enrollment adds an intermediary between our registered investors and their book-entry shares. Although potential risk is enabled by adding an intermediary, investor’s DirectStock accounts are not protected by SIPC. Despite the fact that SIPC is not relevant in the context of “transfer agent function”, Computershare provides services other than the transfer agent function including custody services, and services provided by 3rd parties including uncertain broker-dealer(s).
According to our plan brochure: DirectStock accounts, the securities held therein and any cash temporarily held on behalf of a Participant are not deposits of Computershare and are not insured by the [SIPC].
Although our investment plan states that Computershare’s nominee (Dingo & Co.) holds ALL shares deposited or purchased (in DirectStock accounts), that is not entirely true. An undisclosed portion of enrolled shares is held by Computershare’s uncertain broker (rather than their nominee). That important custody disclosure is missing from our investment plan brochure. In addition, our investment plan includes an insurance “waiver” stating: Under no circumstances shall Computershare be responsible for any action taken or omitted to be taken by such affiliated or unaffiliated broker-dealer.
To sum it up, the uncertain broker-dealer that Computershare uses is holding a portion of investor’s registered shares (titled to Cede & Co), that custody disclosure is missing from the DirectStock plan brochure, our investor’s accounts (and securities) are not protected by SIPC, and Computershare has a waiver stating they are not responsible if the uncertain broker-dealer (holding a portion of registered securities) makes a mistake.
Our leadership team has a legal and ethical obligation to act in the best interest of our approximately 9512 registered shareholders. Upon termination, investor’s registered whole shares will be moved to self-custody (where SIPC is not necessary) because there will no longer be an intermediary between our investors and their book-entry shares. Please join many other market leading “custody conscious” issuers like Apple, Meta, Nvidia, and Alphabet (who’s termination of DSPP finalizes August 1, 2025) and fortify that all registered holder’s shares will be protected from this alleged counterparty risk through the termination of Computershare DirectStock.