Elon Musk staves off challenge to stay as Tesla's Chairman

Second Measure Second Measure

Second Measure Second Measure

Tesla shareholders voted to keep CEO Elon Musk as the chairman of the company's board of directors on Tuesday. In April, Tesla said it was making 2,270 vehicles a week, less than half the promised 5,000 a week it said it would meet by the end of June. Tesla's website says delivery for that configuration takes four to six months. "We will honor that obligation" to deliver at that price, he said, "and we would do so now if it was physically possible". "We expect to get into volume production by Q1 of next year".

After describing the past few months as among the most "hellish" in his life, Musk said he expected Tesla to post a quarterly profit during the July-September period. Meanwhile, production of the all-wheel-drive variant is imminent, so USA customers who are waiting to configure their D-badged Model 3 order will receive a notification within the next week, said Musk. Volume production of the $35,000 Model 3 would begin in Q1 2019.

Three other votes are also on the ballot, the retention of 3 other board members, ratify the appointment of Pricewaterhousecooper's as Tesla's independent accounting firm and the issue of whether log-time shareholders should have the ability to place director nominees on the proxy ballot.

Before the meeting started, one shareholder said the current board was "an obstacle, not an aid", to the electric auto makers success.

In an interview with CNBC News, ARK Invest analyst Sam Korus echoed Kallo's positive sentiment about Tesla's energy business, stating that the company's progress in its battery technology could very well make Tesla around two years ahead of the competition. Boards are supposed to represent the interests of shareholders and hold executive management to account.

The proposal to remove Musk from his role as chairman of Tesla's board was initiated by Jing Zhao, a shareholder who believes Musk may be "spread too thin". The goal, said Musk, is to be able to go nearly anywhere on earth using the Tesla Supercharger system.

The company has pointed toward Model 3 production of 5,000 a week by the end of this month.

Tesla has plenty of new products in the works, but one thing it will never build is a motorcycle, despite Elon Musk's penchant for biker jackets.

Tesla will announce as soon as next month a combined battery production and vehicle assembly Gigafactory in Shanghai, China.

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