Elon Musk will stay on as Tesla chairman despite attempted investor coup

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It wouldn't be Tesla without drama and the major twist here is that there was an attempt at the shareholder meeting to separate the roles of Chairman and CEO, which Musk survived. Foremost among them that at the Tesla annual shareholders meeting, Musk indicated that the company is well on its way to the magical number of producing 5,000 Model 3's per week, now running at about 3,500.

Tesla shareholders also voted against a shareholder proposal for Tesla to appoint an independent board chairman.

During the shareholders meeting, Tesla chief executive Elon Musk committed to a March 2019 reveal date for the Model Y. The automaker won't build the Y at its current Fremont factory and instead construct it elsewhere, potentially alongside the Tesla Semi and new Tesla Roadster.

Musk choked up after taking the microphone to talk about the company onstage in front of investors.

I think most of the increase comes from Musk's confidence in hitting the Model 3 production goals and achieving profitability.


Tesla had recommended investors allow Mr Musk to keep both roles and argued that the directors were qualified. Responding to a question about the smaller segments the brand will expand into, Musk said: "I think we'll do a compact vehicle in less than five years". "At a lot of other companies, they're built by marketing or the finance department and there's no soul".

The two positions are often held by the same person in U.S. companies, unlike in United Kingdom firms.

Elon Musk has confidently kept total control of Tesla, as shareholders voted overwhelmingly to proposals keeping power at the company with the silicon valley billionaire.

In an earnings call last month, Musk's reply to an analyst's question was "Next". Musk himself owns more than 20% of outstanding shares and institutional investors own another 61%, concentrated mostly in the hands of five large money managers - T Rowe Price, Fidelity, Baillie Gifford, Vanguard and Blackrock.

He added said the electric auto maker will soon produce more batteries at its Nevada Gigafactory than all other electric vehicle companies combined, including those in China. The gathering of Tesla fans and shareholders capped several rough months for the company as it struggled to meet production numbers, and Wall Street expectations. The stock closed on Tuesday at just over $291, but had been as high as $389 in September.

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