The World's Top Wealth Fund Voted Against Musk As Chair At Tesla

Elon Musk co-founder and CEO of Tesla Inc

Elon Musk co-founder and CEO of Tesla Inc

Shareholders in Tesla (TSLA - Free Report) will convene on Tuesday at the company's Mountain View, CA headquarters for the annual Meeting of Stockholders.

The vote comes at the behest of an individual shareholder, Jing Zhao of Concord, California, who owned just 12 shares of Tesla stock - allowing him to attend the meeting and propose a vote on the issue of the chairman seat. "No one has succeeded in doing this in a very long time in the U.S.".

Despite the fact that the Model 3 is expected to become Tesla's best-selling auto once the current step up in production is complete, the Model Y could usurp it, given SUVs' growing dominance in the industry. Due to a recent set of upgrades, Musk stated that Tesla would likely hit its target of producing 5,000 Model 3 per week by the end of the second quarter.

Tesla has plenty of new products in the works, but one thing it will never build is a motorcycle, despite Elon Musk's penchant for biker jackets. The company's structure requires two-thirds backing for a shake-up.

"The biggest constraint on output is general assembly", Musk said.

While Musk also holds the titles of founder and chief executive at Tesla, losing the chairmanship would significantly reduce his influence over the company, in which he has a 20% stake. The stock had dropped 6.5% this year to Tuesday's close. Tesla has focused on high-priced configurations, some exceeding $70,000, since the auto began rolling off assembly lines in 2017.

Investor Antonio Gracias, Tesla's lead independent director; James Murdoch, the CEO of Twenty-First Century Fox Inc; and Elon Musk's brother Kimbal have all been re-elected as Tesla directors. Ordered today, wait times for Model 3s with the existing configuration would be three or four months, said Musk. The shorter-range battery version of the vehicle that starts at $35 000 will start to arrive late this year, though the company may not reach volume production of that iteration until the first quarter of 2019.

Tesla Model S went on sale in 2012 and Model X in 2015.

Musk told shareholders that the Tesla Model Y would be unveiled in March 2019 with production in early 2020.

Arguing that the sprawling company has become hard to oversee, one investor proposed splitting the chairman and chief executive jobs, both of which Musk holds.

"We did not think these individuals are a credible, independent voice for shareholders".

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