Bid of Tesla Investors To Remove Him From Top Position Fought Off by Elon Musk

Photo by JD Lasica from Flickr

The chief executive officer and co-founder of Tesla has fought off an effort that was initiated by investors to remove him from the role of chairman of the electric car maker.

More than a fifth of Tesla is owned by Elon Musk. He serves as both the chairman and the chief executive of the company, which is not considered to be unusual in the United States, not like in the United Kingdom.

However, Tesla disclosed that a “supermajority” of shareholders dismissed an effort to pressure Musk to step down as the chairman at the annual meeting of the company.

Some of those who were also re-elected to the board of the company include Directors Antonio Gracias, James Murdoch, the Fox chief, and Kimbal Musk, the brother of Elon.

Musk utilised the annual shareholder meeting to reassure the investors regarding the progress of the company following a tough few months in which Tesla has fallen out with Wall Street after Musk declined to answer questions of analysts which he said were “boring.” It also became the subject of a federal probe into a fatal fire that involved one of its cars in California and it missed production its targets for its latest model.

Apparently, Musk choked up as he thanked his supporters and the investors for purchasing the product saying: “at Tesla, we build our cars with love.”

It was confirmed by Tesla that the company would “quite likely” achieve its goal of producing 5,000 Model 3 cars in a week before the end of this month.

The firm also disclosed that its new “gigafactory” would be established in Shanghai, even though a final announcement is still pending. The plans of Tesla come as relations between the United States and China are deteriorating because of trade issues and the attempts of  China to diplomatically isolate Taiwan.

Musk said that he expected that the carmaker will post a quarterly profit during the period of July to September, something that it has rarely achieved in the past 15 years.