Tesla shares fall as Musk survives shareholder leadership challenge

Tesla shares closed lower after the car maker's CEO survives leadership challenge and announced it was on target to up Model 3 production to 5,000 pr week by the end of the month.

Tesla shares fall as Musk survives shareholder leadership challenge

Tesla shares closed in the red Tuesday, as CEO Elon Musk overcame a shareholder challenge to remove one of his two leadership roles at the firm’s AGM. An investor sought to strip Musk of his position as Chairman, while leaving his CEO role intact.

In the US, company leaders often hold both roles, something that doesn’t happen in UK companies.

Tesla shares ended the US Tuesday session 1.89% lower at $291.13. However, the stock is higher in after-hours activity.

Shareholder loses leadership challenge vote

A Tesla shareholder called for a vote to remove the title of Chairman from Tesla founder Musk. However, the proposal was voted down and Musk has retained his dual leadership position of the electric car manufacturer.

Other details of the AGM were a little less disruptive and showed that the car maker is now making around 3,500 Model 3’s per week. Musk added Tesla is now on target to increase that output to 5,000 a week by the end of June.

However, despite retaining his total leadership and being back on track with production targets, Musk told shareholders that it’s been a tough time at the US electric car maker firm.

“This is the most excruciating, hellish several months that I’ve ever had,” Musk said. “And a lot of other people at Tesla. But I think we’re getting there.”

Musk also told attendees at the AGM in Mountain View, California, that, contrary to some reports and expectations, that he still doesn’t anticipate a situation where the company will need to raise further capital later this year.

Tesla continues to add new talent

Last week, ahead of the AGM and after employing a raft of new senior executives, Tesla announced it had added even more new talent to its global leadership team.

Sanjay Shah, a former Amazon and Dell employee, is joining Tesla as the Senior Vice President of Energy Operations, responsible for worldwide deployment and operations of Tesla’s energy products, including Solar, Powerwall and Powerpack.

In addition to that appointment, Jan Oehmicke will join Tesla in July as Vice President of Tesla Europe, managing finance, sales and operations for the greater Europe region. Oehmicke is currently CEO of BMW financial services France.

“We’re excited for Sanjay and Jan to bring their significant experience to Tesla,” Tesla said.

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