Tesla investors pave way for stock split, vote with company on most proposals

Shareholders of Tesla Inc. on Thursday approved a proposal expected to lead to a 3-for-1 stock split and sided with the company on most of the proposals to vote on.

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announced the preliminary results of the vote at its gigafactory in Austin, its new corporate headquarters, at the end of an official meeting of shareholders followed by a speech and a question-and-answer session with CEO Elon Musk.

The electric carmaker said the stock split, its second in two years, would give its employees more flexibility and make the shares more accessible to retail investors. Tesla did a 5-for-1 stock split in August 2020 and its shares have risen 31% since then. They closed Thursday at $925.90, up 0.4%.

See: Tesla files for 3-for-1 stock split

With a goal of producing 20 million vehicles a year, Musk said an announcement about the new factory location could come later this year and said Tesla could have 10-12 factories around the world. It currently has four, in Fremont, California; Austin, Texas; Shanghai and Berlin.

Shareholders also approved the reappointment of two board members despite being urged not to by proxy advisory firms Glass Lewis & Co. and Institutional Shareholder Services.

Martin Viecha, Tesla’s head of investor relations, announced that the company’s proposals to reduce director terms from three years to two years and remove the supermajority voting requirement for the proposals had been approved by investors. but they did not reach the two-thirds threshold. of the total shares in circulation necessary to make the votes official. In addition, a shareholder proposal for shareholder proxy access was approved, he said. It would give shareholders the ability to nominate board members.

See: Influential proxy advisory firms urge not to vote for Tesla board members, for most shareholder proposals

Another seven shareholder proposals failed, according to preliminary results. They included requests for reports on efforts against harassment and discrimination, and on mandatory arbitration. Shareholders had also urged Tesla to adopt a policy on freedom of association and collective bargaining.

The company expects to submit a final tally of shareholder votes within four business days, as required, Viecha said.

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