Musk Promises Two New Directors for Tesla Amid Shareholder Criticism

Shareholders are concerned that Tesla CEO Elon Musk isn't getting enough independent advice

Shareholders are concerned that Tesla CEO Elon Musk isn't getting enough independent advice

In the past one month, the shares of the electric motor vehicle manufacturer have appreciated by 35% based on future prospects since investors are betting on the fact that Tesla's chief executive officer and co-founder, Elon Musk, will revolutionize both the energy and the auto sectors.

The letter was also signed by the California State Teachers' Retirement System (CalSTRS), Connecticut Retirement Plans and Trust Funds and Hermes Equity Ownership Services, which combined with CtW have about $721 billion in assets under management.

The shareholder letter was signed by officials from a NY city office overseeing public investment funds, retirement funds from the states of California and Connecticut, Hermes Equity Ownership Service and CtW Investment Group.

Guillen had previously been in charge of Daimler's Cascadia semi truck program, which makes him particularly qualified to lead an electric truck program since he not only has experience with trucks, but he was also more recently the program director of Tesla's Model S.

Musk a year ago announced plans for electric vehicles ranging from a commercial truck called the Tesla Semi to a public transport bus, a "new kind of pickup truck" and a compact sport utility vehicle.

Tesla board members include Mr Gracias, a shareholder and board member of SpaceX, another company controlled by Elon Musk; as well as Brad Buss, a former chief financial officer at solar power business SolarCity, which was founded by Mr Musk and later bought by Tesla. The investment group also sought to forbid immediate family members of the senior executive team from concurrently serving on the board.

A defiant Elon Musk took to Twitter to suggest disgruntled Tesla investors buy stock in Ford Motor Co. "Shareholders need to be able to hold management accountable". As a result, it invited criticism on corporate governance. There's no grille on the face however the nose has gone under the scratch, for which Musk additionally invited contributions from Tesla fans.

While the pension funds behind the letter do not have large positions in Tesla on their own, they are influential among other institutional investors. "But we will push for these changes regardless". At the close on Tuesday, Tesla's market capitalisation was $5.4bn higher than Ford Motor and trailed General Motors by about $461m.

America's biggest auto dealer isn't sold on Tesla Inc. becoming the top USA automaker by market capitalization. Year-to-date, TSLA has gained 42.85%, versus a 5.30% rise in the benchmark S&P 500 index during the same period. "If Tesla truly wants to be forward thinking, then it needs to embrace accountability and it needs to welcome diverse, independent opinions into its boardroom", New York City Comptroller Scott Stringer told Bloomberg. "Strong performance doesn't insulate Tesla from accountability".

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