Tesla traders pave the best way for a inventory break up, voting with the corporate on many of the proposals

Shareholders of Tesla Inc. on Thursday passed a proposal expected to result in a 3-to-1 stock split and sided with the company on most proposals for a vote.

Tesla TSLA,
+ 0.40%
announced the results of the preliminary voting at the gigafactory in Austin, their new corporate headquarters, at the end of an official shareholder meeting, followed by a keynote and Q&A session with CEO Elon Musk.

The electric carmaker said the stock split, its second in two years, will give employees more flexibility and make the stock more accessible to retail investors. Tesla made a Share 5 get 1 free in August 2020, and its stock is up 31% since then. They closed Thursday at $925.90, up 0.4%.

See: File Tesla shares 3 get 1 free

With a goal of producing 20 million vehicles a year, Musk said an announcement of a new factory location could be made later this year, and said Tesla could eventually have 10 to 12 factories around the world. . It currently has four, in Fremont, California; Austin, Texas; Shanghai and Berlin.

Shareholders also approved the re-election of two board members despite being mandated by consulting firms Glass Lewis & Co. and Institutional Shareholder Services urges against this.

Martin Viecha, Tesla’s head of investor relations, announced that the company’s proposal to reduce the director’s term of office to two years from three and remove the requirement for a majority vote for the proposals, has been approved by investors. approved investment but did not reach the threshold of 2/3. the total number of shares outstanding required to make the vote official. Additionally, a shareholder proposal for shareholder proxy access was passed, he said. It will give shareholders the ability to nominate board members.

See: Influential proxy consulting firms urge against voting for Tesla board members on most shareholder proposals

Seven other shareholder proposals failed, according to preliminary results. They include reporting calls on anti-harassment and discrimination efforts, and on mandatory arbitration. Shareholders have also urged Tesla to adopt a policy of freedom of association and collective bargaining.

The company expects to submit a final count of shareholder votes within four business days, upon request, Viecha said.

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