Tesla Shareholders To Vote On Ousting Musk As Chairman

Elon Musk is the outspoken CEO of Tesla as well as the company’s chairman. However, he could lose the latter title as the company has revealed shareholders will vote on a proposal to require the chairman of the board of directors be independent.

According to a proxy statement, the proposal was submitted by Jing Zhao who owns just 12 shares of the company. In his proposal, Zhao notes the current leadership structure – where one person can serve as chairman and CEO – might have been effective for Tesla in its early years. However, he contends the company is in a more highly competitive environment with rapidly changing technology so it is “more and more difficult to oversee Tesla’s business and senior management.”

The proposal is mainly focused on potential conflicts of interest and it specifically mentions Tesla’s acquisition of SolarCity in 2016. As the proposal notes, Musk was a significant shareholder in SolarCity and also it’s chairman. Zhao went on to note a similar situation with SpaceX as Musk is the company’s CEO and CTO. He also says Tesla board member Kimbal Musk sits on the SpaceX board and other members of Tesla’s board have an interest in SpaceX.

Unsurprisingly, Tesla’s board is recommending shareholders vote against the proposal. In a statement, the board said Tesla’s “success to date would not have been possible if the board was led by another director lacking Elon Musk’s day-to-day exposure to the company’s business.” The board went on to say “In light of the significant future opportunities for growth and the careful execution needed in order for the company to achieve it,” the board believes Musk should continue to serve as Tesla’s chairman.

The proposal will be voted on during the company’s annual meeting of shareholders which takes place on June 5th.

  • Whether you like Musk or not, he is Tesla…limit his role and you limit Tesla…a great example of this is Apple…it has lost its shininess ever since he died…no innovation and ho-hum products that are behind their competitors in features…

    • G82FS

      This…

    • Nordschleife

      I do agree.

    • Charles Lane

      pretty much sums it up, Tesla have a tough road ahead and without Musk at the wheel the chance of crashing is exponentially greater

      • Smith

        Bull

    • LWOAP

      So if Musk gets das boot that could hurt Tesla in the long run. Yeesh.

      • Smith

        No, there is no long tern for Tesla, the wheels are already coming off!

    • Jay

      I have fallen out of love with Tesla as a whole but this is true. Business people are so stupid its sad. I dont get how board members arent held accountable for 5-10 year growth and success metrics. They literally only care about a small microcosm of time to get in and get out. Churn and burn.

      • Follow the money…everyone wants to get-rich-quick….

        • Jay

          Certainly , not blind to that at all but at the cost of not getting richer is pretty dumb.

    • Smith

      Yes, you are right, it would be a shame to limit Elon’s responsibility for the quarterly losses of between $200 to $600 million per quarter and is lack of focus and attention to the business due to his desire for world dominance in sports cars, semi-trucks, and other outside interests of self promotion, like going to Mars and shooting people around the country in a tube. Can you say Ponzi.

  • jaykit

    Soon TSLA creditors will be able to vote on the bankruptcy liquidation plan.

  • LWOAP

    That doesn’t good.

  • Six_Tymes

    whelp, share holders are idiots. I mean are they trying to bring the company down? as I get older, it still shocks me to see how many people that have big money are not all that smart, some are articulate idiots, this is proof, because i am sure all these share holders that want him out speak a good game of corporate BS. This is also bad for Elon’s confidence. A utterly stupid move from these shareholders.

    • Jay

      its what is ruining/ruined big business. Quarterly plans based forecasts and response. When in reality things need years. Have to constantly appease shareholders at the detriment of any actual future success or profit. This is what happens when frat bros are the ones who get MBAs. There is no place for long term innovation or growth structures. Business people are amongst the most short sighted self serving idiots I encounter. I work for a public company and we have to justify hours, which leads to budgets, which leads to profits, just to even do the work we were hired for. Then repeat.

      • Six_Tymes

        you substantiate my statement well. I personally avoid “corporate speak” at all costs, mostly because of the points you have made, I go out of my way now to not align myself with that mentality. At one point in my life I worked 15 years for a large media company based in the US surrounded by those as you describe, I coined a phrase years ago of, Articulate Idiots, all are shortsighted thinkers, who claim to be “Positive thinkers” and none are.

        • Jay

          The speak is all that makes them feel superior and now as I’m acclimated to it it’s transparent as day how dumb these corporate jocks are. I could run circles around them but I’m not on that side of the coin as I went towards creative and engineering. Yet they get paid more to be vulnerabilities in both workforce and economy publicly and privately. It’s grand irony nearing larceny the people who are the worse with money get rewarded and celebrated because they’re still technical wealthy and turned 1% when actual strategy could net 15+

  • YOU INVEST IN TESLA TO SAVE THE WORLD. IF YOU WANT TO MAKE MONEY INVEST SOMEWHERE ELSE.

    • jaykit

      in·vest
      verb
      gerund or present participle: investing
      1.expend money with the expectation of achieving a profit or material result by putting it into financial schemes, shares, or property, or by using it to develop a commercial venture.

      • shamrock

        … or Material Result. Check.

    • Belthronding

      is this what you really think? to save the world by tesla?

      • Paul

        Yeah, WTF man?

      • NO I THINK THAT’S BASICALLY THE VIBE I GET FROM THE COMPANY. LET’S FACE IT IF CUSTOMERS ARE WILLING TO PUT DOWN $1000 IN THE HOPE THAT SOMEDAY THEY CAN ORDER A CAR THEY’RE PICKING UP ON THAT VIBE TOO. WHY BUY TESLA STOCK IF YOU WANT TO MAKE MONEY? WAY TOO MANY OTHER PLACES TO INVEST IF THAT’S YOUR GOAL.

        • Jay

          Lol what? I put down money for a car nothing else. I gave up on it and Tesla in general but my deposit had nothing to do with saving jack but rather intruige in an emerging technology.

          • I’M NOT SAYING THAT’S WHAT I’D DO BUT PEOPLE WHO PUT MONEY DOWN ON TESLAS AREN’T THE AVERAGE BUYER. LIKE IT OR NOT TESLA HAS CHANGED THE CAR LANDSCAPE AND MUSK IS THE DRIVING FORCE.

  • Jay D

    Lol its just one guy with 12 (TWELVE!) shares.Though i can’t just assume this guys previous history with Tesla.I’m just gonna assume he’s gonna have very little or no infulence on other shareholders to outst Elon.Pretty sure this is nothing.

    • Exactly, 12 shares is like an ant in a mountain, I had no idea on why this proposal is even being considered.

  • Paul

    Send him off in to space with another of his cars.

  • Jay

    Should have stayed niche. The Tesla 3 is already not special, pretty wonky n cheap for how much it costs. I get the battery tech but I’m buying a car not a battery. If we are to use the iPhone as an analogy, Apples phone doesn’t have shitty quality in most terms, doesn’t compromise anymore than other brands compromise even since It’s inception. Apple could have stuck a phone dial to an iPod but didn’t yet Tesla pretty much did. They out toastered Toyota.

  • assassingtr

    Why is this even a discussion from a guy with 12 Shares? That’s like saying I’m an investor in Coca Cola, I bought one share. Technically I am an investor but to one cares

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