Tesla buyers pave the best way for a inventory break up, voting with the corporate on most proposals

Tesla Inc. shareholders on Thursday approved a proposal that is expected to result in a 3-for-1 stock split, and approved the majority of the company’s voting proposals.

Tesla TSLA,
announced preliminary voting results at its gigafactory in Austin, the company’s new headquarters, at the end of a formal shareholder meeting followed by a speech from CEO Elon Musk and a question-and-answer session.

The electric car maker said the stock split, its second in two years, would give employees more flexibility and make the stock more accessible to retail investors. Tesla performed a in 2020 August. a 5-for-1 stock split, and its shares have risen 31 percent since then. They closed Thursday at $925.90, up 0.4 percent.

See: Tesla is filing a 3-for-1 stock split

Aiming to produce 20 million vehicles a year, Musk said an announcement about a new factory location could be made later this year, and said Tesla could eventually have 10 to 12 factories around the world. She currently has four, in Fremont, California; Austin, Texas; Shanghai and Berlin.

Shareholders also approved the re-election of two board members, despite the opposition of proxy advisory firms Glass Lewis & Co. and Institutional Shareholder Services.

Martin Viecha, Tesla’s head of investor relations, announced that the company’s proposal to reduce director terms to two years from three years and eliminate the requirement for a majority vote was approved by investors, but failed to meet the two-thirds threshold. of all outstanding shares required to make the votes official. In addition, a shareholder proposal for shareholder proxy access was accepted, he said. This would give shareholders the ability to appoint board members.

See: Influential advisory firms urge Tesla board members not to vote on majority shareholder proposals

Seven other shareholder proposals failed, according to preliminary results. They included calls for reporting on efforts to combat harassment and discrimination and for mandatory arbitration. Shareholders also called on Tesla to adhere to its policies on freedom of association and collective bargaining.

The company expects to submit the final number of shareholder votes within four business days, as required, Viecha said.

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