Published: Wed, June 06, 2018
Business | By Eloise Houston

Tesla: Why It's 'All About' Model 3 Production

Tesla: Why It's 'All About' Model 3 Production

Tesla, which has talked about building a factory in Europe for years, plans to announce a location later this year, Mr. Musk said.

Tesla CEO Elon Musk has rebuffed a shareholder attempt to overhaul the electric vehicle maker's board and strip him of his role as chairman, despite worries about the company's shaky finances and inability to meet its production goals for its first mass-market sedan.

The company said a "supermajority" of shareholders also rejected a proposal to force Musk to step down as Tesla's chairman, a position he has held since 2004 - four years before he also assumed the CEO job.

Following the announcements of vote tallies, Musk took the stage, at times appearing emotional and choked up.

Musk described the last few months as excruciating and hellish for him.

"We're confident we know how to address them and we are addressing them", Musk said, referring to production issues plaguing the Model 3.

However, he gave the shareholders some good news. Still, he said it's likely that Tesla will produce 5,000 Model 3 sedans a week by the end of the month, and that the company will be cash-flow positive in the third and fourth quarters of the year.

"I think it's quite likely we'll achieve a 5,000 vehicle week by the end of this month", Musk said.

While the production increases mentioned by Musk seem promising to some, it was not enough for other members of the board. The firms also have raised concerns about the company's financial performance and the status of Model 3 production. "One of the biggest mistakes we made was trying to automate things that are super easy for a human to do, and super hard for a robot".

A shareholder had proposed that the company replace Musk, who has served as the chairman of Tesla's board of directors since 2004 and its CEO since 2008, with an independent chairman. Zhao noted Musk kept busy with several other companies.

Mr. Musk repeated past statements that the company won't need to raise cash.

Directors Antonio Gracias, James Murdoch and Elon's brother, Kimbal Musk, won by "a wide margin", according to Tesla. Despite concerns that each member would be unable to help Musk focus on the many challenges Tesla faces, stockholders voted to maintain their positions on the board.

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