Tesla shareholders comply with board suggestions at annual assembly

August 4 (Reuters) – Tesla Inc (TSLA.O) Shareholders voted on the board’s recommendations on most issues at the company’s annual meeting on Thursday, including re-electing directors, passing a stock split, and reject proposals that focus on environment and governance.

The votes for three of the 13 proposals did not follow the board’s recommendations, according to preliminary results presented at the annual shareholder meeting in Austin, Texas.

In the face of opposition from the board of directors, shareholders adopted an advisory proposal to increase investors’ ability to nominate a director.

Sign up now for FREE unlimited access to Reuters.com

Two of the board’s proposals – cutting the director’s term of office to two years and removing the mega-requirements – did not receive the mega-levels needed to pass.

Dressed in black, CEO Elon Musk heavily influenced the vote and addressed an enthusiastic crowd after the vote. He owns 15.6% of Tesla shares, according to Refinitiv data, after selling millions of shares last year. read more

Investors approved a three-for-one stock split. While the split doesn’t affect the company’s fundamentals, it could boost stock prices by making it easier for investors to own shares.

The failed shareholder proposals included controversial proposals endorsing employees’ right to union, requiring the company to report its efforts to prevent racism and harassment annual sex, as well as a water risk report.

A proposal requiring directors to allow large and long-term shareholders or groups with at least 3% of the shares to nominate directors, cleared the board’s objections. The board previously said a proposal like this could create an opportunity for special interests to derail Tesla’s plans.

Musk said the company aims to reach a production rate of 2 million vehicles per year by the end of 2022 and will continue to build factories.

Tesla has factories in California and Shanghai and is developing two more in Austin, Texas and Berlin. Musk said Tesla will likely announce an additional factory this year, and he expects 10-12 so-called gigafactories eventually.

Sign up now for FREE unlimited access to Reuters.com

Reporting by Ankur Banerjee and Akash Sriram in Bengaluru; additional reporting by Peter Henderson in Oakland and Kevin Krolicki in Detroit; Edited by Anil D’Silva

Our standards: Thomson Reuters Trust Principles.

Leave a Comment