Tesla Chief Executive Elon Musk on Tuesday warned that the electric-vehicle maker was not proof against the worldwide economy, which he said might be difficult for the following 12 months.
At the corporate’s annual shareholder meeting in Austin, Texas, Musk spoke about automotive demand, making more cash than competitors in a slow economy, and in addition said he would conduct a third-party audit in cobalt mines that provide Tesla with a key ingredient to make batteries.
In an indication of tough times even for Tesla, the market leader in electric cars, Musk said the corporate would attempt to advertise its vehicles, something it has not done before.
“Tesla will not be proof against the worldwide economic environment. I expect things to be just at a macro economic level difficult for a minimum of the following 12 months,” said the billionaire, dressed casually in a black T-shirt and trousers.
On the meeting, shareholders voted to appoint the corporate’s co-founder and former chief technology officer, JB Straubel, to the board. Proxy advisory firm Glass Lewis had urged investors to vote against Straubel’s appointment, citing worries about his independence.
Additionally they rejected a proposal to publish a report that sought to ascertain succession plans for Musk.
“Tesla will not be proof against the worldwide economic environment. I expect things to be just at a macro economic level difficult for a minimum of the following 12 months,” Elon Musk said.Tesla
Musk has been under pressure to handle investor concerns concerning the lack of a transparent successor, softening demand and delays of some latest models, in addition to his involvement in social media platform Twitter, which he bought in October.
“There was a short-term distraction because I needed to do major open-heart surgery on Twitter to make sure the corporate’s survival,” Musk said Tuesday. Last week he announced that NBCUniversal’s former promoting head, Linda Yaccarino, will succeed him as Twitter CEO and that he’ll give attention to products and technology at the corporate.
In April, Musk had said Tesla would prioritize sales growth ahead of profit after it missed its margin goal because of aggressive price cuts.
Musk has been under pressure to handle investor concerns concerning the lack of a transparent successor, softening demand and delays of some latest models.AP
Musk sent an email to staff on Monday that the corporate could make no latest hires unless he personally approves them, including contractors, and asked executives to “think twice” before submitting hiring requests.
Tesla shareholders on Tuesday swiftly voted with the board’s recommendations on nearly all proposals. The meeting was attended by shareholders who won invitations via lottery and was also live-streamed.
Tesla shares closed flat at $166.52 on Tuesday and rose 0.6%in after-hours trading. The stock has dropped about 60% from its record high in November 2021, hurt by Musk’s distraction with Twitter and worries about softening demand for electric cars.
Musk sent an email to staff on Monday that the corporate could make no latest hires unless he personally approves them.AP
Board nominees
Straubel, who’s CEO of Redwood Materials, a battery recycling and materials company, is taken into account a possible successor to Musk, in accordance with Gene Munster, managing partner at Deepwater Asset Management.
Shareholders also voted to re-elect Musk and Chair Robyn Denholm as board members.
Proxy advisory firm ISS has advisable a vote against Denholm, citing concerns about an absence of scrutiny over using Tesla shares as collateral for loans by Musk and his brother, Kimbal.
Tesla stock has dropped about 60% from its record high in November 2021, hurt by Musk’s distraction with Twitter and worries about softening demand for electric cars.AP
Succession
Investors voted against publishing a report on “Key-Person Risk.” The proposal sought to discover key individuals and establish succession plans.
Musk said eventually yr’s shareholder meeting that he’ll stay on the automaker so long as he is beneficial. In November, Tesla director James Murdoch testified in court that Musk had identified someone as a possible successor.
Tesla board members have discussed CFO Zach Kirkhorn as a possible successor as CEO, the Wall Street Journal reported last week, citing an individual conversant in the matter.
