Elon Musk survives challenge to Tesla control

Shareholders reject bid to eject electric
car company boss from board

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The electric car company’s shareholders rejected a proposal to
oust the firm’s founder and chief executive from his other role as
chairman, the BBC reports.

According to tech site BGR, the proposal was lodged by Jing Zhao, a
California resident with just 12 shares in Tesla. 

Zhao’s attempt to eject Musk from his chairman role was backed
by CtW Investment Group, an activist firm that represents
labour union pension funds. The investment company also
called on shareholders to reject the re-election of three Tesla
directors, reports ABC News. 

The directors in the firing line were Musk’s brother,
Kimbal, company senior director Antonio Gracias and James Murdoch,
son of media mogul Rupert. CtW Investment Group argued that
the trio were not qualified to lead a car manufacturer, the US
broadcaster reports. 

However, a “supermajority” of shareholders voted in favour
of retaining Musk as company chairman and of the re-election of the
three directors. 

Two-thirds of the company’s investors must give the green light
for any changes to occur, says The Daily Telegraph. Musk owns 22% of the
firm. 

The news will come as a relief to the South African-born
billionaire, who came under fire from investors after cutting off
analysts’ questions about company finances during a conference call last month, the newspaper
says. 

Tesla also appears to be making headway on the production of its
Model 3 electric car, which has repeatedly missed
manufacturing targets since its launch last July.  

Musk told the annual meeting that Tesla is now producing 500
examples of the budget EV every day, says The Verge. 

That puts the company well on track to hits its key
production target of 5,000 cars per month by the end of June, the
tech site says.