Tuesday will be the day on which Tesla is going to hold its shareholder meeting for 2018. It will be hosted at computer history Museum in Mountain View, California. At 2:30 PM PST, the shareholders will be voting on a variety of different decisions which are taken by the executives of the company. One such decision will be to decide the position of Elon Musk in Tesla.
Earlier attempts to remove Elon Musk:
If indeed, the shareholders vote to remove Elon Musk, this will not be the 1st such attempt. In April, a shareholder by the name of Jing Zhao moved a proposal to remove Elon Musk as chairman. Musk has been on the board of Tesla for over 14 years now. He started in this position in 2004. According to the proposal which was kept earlier, it is not in the interest of the company to have the same individual as chairman as well as CEO. Also, the shareholder highlighted that the other companies of Elon Musk might pose a conflict of interest with Tesla down the line.
Institutional shareholder services which is a proxy adviser also supported the move. Also, in the next meet, there is also a move to remove 3 board members of Tesla. The reason for the removal motion is that according to the forms, they do not have significant experience in the industry. The 3 board members include James Murdoch, Kimbal Musk, Antonio Gracias.
According to analysts like David Whiston, there are very little chances that Elon Musk will be removed. Many of the big investors in Tesla support Elon Musk. As a result, they will be throwing their entire weight behind Elon Musk. According to him, the only reason why these big investors are invested is that Elon Musk is at the helm of the affairs. Also, many of the investors consider him to be a true visionary like Steve Jobs. This is the reason why the removal of Elon Musk is actually an unlikely decision on Tuesday.
Big challenges facing Tesla:
Tesla is currently facing some of the biggest challenges yet. The model 3 which is the most unique offering of Tesla to go into mass production. Also, Tesla has promised its shareholders that by the end of Q2, 5000 model 3 vehicles will be produced each and every week. This will result in cost reduction which will generate a healthy margin for the company.
It remains to be seen whether these promises are met or not. However, with investors becoming skeptical of Elon Musk, Only time can tell. teslarati.com