Tesla shareholders broadly follow the board’s recommendations at the annual meeting

Tesla shareholders broadly follow the board's recommendations at the annual meeting
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August 4 (Reuters) – Tesla Inc (TSLA.O) shareholders voted on board recommendations on Thursday at the company’s annual meeting on most issues, including re-electing directors, approving a stock split and rejecting proposals focused on the environment and governance.

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

Over board objection, shareholders passed an advisory proposal that would increase the ability of investors to appoint directors.

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Two of the board’s proposals — reducing director tenure by two years and eliminating high preference requirements — didn’t get the super benefits needed to pass.

Dressed in black, CEO Elon Musk made a big impact on the vote and spoke to an enthusiastic crowd after the vote. Refinitiv owns 15.6% of Tesla after selling millions of shares last year, according to Refinitiv data. read more

Investors approved a three-for-one stock split. Although the split does not affect the company’s fundamentals, it can increase the stock price by making it easier for investors to own the stock.

The failed shareholder proposals included supporting workers’ right to unionize, asking the company to report annually on its efforts to prevent racial discrimination and sexual harassment, as well as reports on water risk.

The proposal, which asked directors to allow large and long-standing shareholders or groups holding at least 3% of the shares to nominate directors, overcame objections from the board. The board has previously said such a proposal could create opportunities for special interests to bend Tesla’s plans.

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

Tesla has factories in California and Shanghai and is expanding two more factories in Austin, Texas and Berlin. Musk said he expects Tesla may announce an additional factory this year, eventually having 10 to 12 gigafactories.

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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.

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