August 14, 2022

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Tesla investors pave the way for a stock split, and vote with the company on the most bids

Tesla investors pave the way for a stock split, and vote with the company on the most bids

Tesla shareholders on Thursday approved a proposal expected to lead to a 3-for-1 stock split and stood by the company on most offers to vote.

Tesla TSLA,
+ 0.40%
Initial voting results were announced at its giant Austin plant, the company’s new headquarters, at the end of a formal shareholder meeting that was followed by a question-and-answer session with CEO Elon Musk.

The electric car maker said the stock split, its second in two years, would provide its employees with more flexibility and make shares more accessible to retail investors. Tesla conducted a 5 for 1 stock split in August 2020Its stakes have increased by 31% since then. On Thursday, it closed at $925.90, up 0.4%.

We see: Tesla stock split files 3 for 1

With a goal of producing 20 million cars a year, Musk said the announcement of a new plant location could come later this year, and he said Tesla could eventually have 10 to 12 plants around the world. She currently has four, in Fremont, California. Austin, Texas; Shanghai and Berlin.

Shareholders also agreed to re-elect two board members despite being urged against doing so by proxy consulting firms, Glass Lewis & Partners. and services of institutional shareholders.

Martin Visha, Tesla’s head of investor relations, announced that the company’s proposals to reduce director’s tenures to two from three years, and to remove the requirement for a supermajority vote for offers, had been approved by investors but failed to reach the two-thirds threshold. …of the total outstanding shares needed to make the vote official. In addition, the shareholder’s proposal for proxy access to shareholders was passed, he said. It will give shareholders the ability to nominate members of the board of directors.

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We see: Influential proxy advisory firms urge against voting for Tesla board members, for most shareholder proposals

According to preliminary results, seven more proposals to shareholders failed. It included calls for reports on anti-harassment and discrimination efforts and mandatory arbitration. Shareholders also urged Tesla to adopt a policy on freedom of association and collective bargaining.

Visha said the company expects to record a final shareholder vote tally within four business days, as required.