Tesla shareholders widely follow board recommendations at annual meeting

Aug 4 (Reuters) – Shareholders of Tesla Inc (TSLA.O) voted in favor of the board’s recommendations on most issues at the company’s annual meeting on Thursday, including reappointing directors, approving a division of actions and the rejection of proposals focused on the environment and governance.

Votes on three of the 13 proposals did not follow the board’s recommendations, according to preliminary tallies presented at the annual shareholders’ meeting in Austin, Texas.

Despite board opposition, shareholders approved an advisory proposal that would increase investors’ ability to nominate directors.

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Two board proposals (reducing directors’ terms to two years and eliminating supermajority requirements) did not receive the supermajority needed to pass.

Dressed in black, CEO Elon Musk heavily influenced the vote, speaking to an enthusiastic crowd after the vote. He owns 15.6% of Tesla, according to Refinitiv data, after selling millions of shares last year. read more

Investors approved a three-for-one stock split. While a split doesn’t affect a company’s fundamentals, it could boost the stock price by making it easier for investors to own the stock.

Failing shareholder proposals included those advocating supporting the right of employees to form a union, asking the company to report annually on its efforts to prevent racial discrimination and sexual harassment, and reporting on the risk of Water.

A proposal asking directors to allow large, long-term shareholders or groups with at least 3% of shares to appoint directors cleared the board’s objections. The board had previously said that a proposal like this could create opportunities for special interests to skew Tesla’s plans.

Musk said the company aimed to reach a production rate of 2 million vehicles per year by the end of 2022 and would continue to build factories.

Tesla has factories in California and Shanghai and is expanding two more in Austin, Texas and Berlin. Musk said that Tesla could announce an additional factory this year and hoped to eventually have 10 to 12 gigafactories.

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Reporting from 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: the Thomson Reuters Trust Principles.

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