May 16 (Reuters) – Tesla Inc (TSLA.O) shareholders swiftly voted with the board’s recommendations on nearly all proposals made at its annual meeting on Tuesday where Chief Executive Elon Musk took the stage just 25 minutes after it started.
Musk has faced investor concerns including the lack of a clear successor at the electric-vehicle maker, as well as softening demand and delays of some new models.
Investors have expressed frustration that Tesla’s board has failed to make sure that Musk is focused on the automaker at a time when competition is rising and the economy is slow.
His commitments to other ventures such as a new AI startup remain a worry even though has Musk said he will devote more time to Tesla after announcing last week that NBCUniversal’s former advertising head, Linda Yaccarino, will succeed him as CEO of Twitter.
Musk has said he plans to focus on products and technology at the social media firm. He is also chief executive of rocket company SpaceX and runs brain-chip startup Neuralink and tunneling firm the Boring Company.
Earlier this year he registered a firm named X.AI Corp, incorporated in Nevada, and has said he will launch an artificial-intelligence platform that he calls “TruthGPT.”
“He could spend more time with X.AI Corp. He has passion about AI,” said Gene Munster, managing partner at Deepwater Asset Management.
“That’s a big X factor,” Munster said, adding it remains unclear whom Musk will hire to lead the AI startup.
Tesla shares closed flat at $166.52 on Tuesday. 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.
Below are some topics that were discussed at Tuesday’s shareholder meeting, which is being held in Austin, Texas and attended by shareholders who won invites via lottery. It is also live-streamed.
SUCCESSION
Investors voted against publishing a report on “Key-Person Risk.” The proposal sought to identify key persons and establish succession plans.
Musk said at last year’s shareholder meeting that he will stay at the automaker as long as he is useful. In November, Tesla director James Murdoch testified in court that Musk had identified someone as a potential successor.
Tesla board members have discussed CFO Zach Kirkhorn as a possible successor as CEO, the Wall Street Journal reported last week, citing a person familiar with the matter.
BOARD NOMINEES
Investors also voted to appoint Tesla co-founder and former chief technology officer JB Straubel as a board member.
Proxy advisory firm Glass Lewis has recommended that shareholders vote against his appointment, citing worries about his independence.
Straubel, who is CEO of Redwood Materials, a battery recycling and materials company, is considered a potential successor to Musk, according to Deepwater’s Munster.
Shareholders also voted to re-elect Musk and Chair Robyn Denholm as board members.
Proxy advisory firm ISS has recommended a vote against Denholm, citing concerns about a lack of scrutiny over the use of Tesla shares as collateral for loans by Musk and his brother, Kimbal.
Reporting by Tanya Jain
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