Elon Musk, CEO of Tesla, has warned that the global economy will be difficult for at least the next year and that his company is not immune to economic downturns. Speaking at the annual shareholder meeting in Austin, Texas, Musk also announced that Tesla would experiment with advertising, which it has not done before, to counter softening demand. He said that the Model Y SUV is on track to become the world’s best-selling car in 2023 and that Tesla will begin delivering its long-delayed Cybertruck pickup later this year.
Management and Production Updates
At the meeting, shareholders approved the appointment of Tesla co-founder JB Straubel to the board. Straubel, CEO of battery recycling and materials company Redwood Materials, is seen as a potential successor to Musk. Shareholders rejected a proposal to publish a report on succession planning. Musk also revealed that Tesla is on track to complete the engineering and design of its next-generation Roadster sports car this year and hopes to start production next year. He teased two new mass-market models under development, which could produce more than 5 million vehicles, but did not provide further details.
Social Responsibility and Shareholder Voting
Musk also promised to conduct a third-party audit of cobalt mines to ensure there is no child labour. He said Tesla would put a webcam on the mine to enable anyone who sees children working to report it. Tesla shareholders approved all of the board’s recommendations, including re-electing Musk and Chair Robyn Denholm as board members. Denholm’s re-election was opposed by proxy advisory firm ISS, which cited concerns about a lack of scrutiny over the use of Tesla shares as collateral for loans by Musk and his brother, Kimbal. Shareholders also rejected a proposal to identify key persons and establish succession plans.
Overall, Musk’s announcements highlighted Tesla’s commitment to producing innovative electric vehicles while being socially responsible and navigating challenging economic conditions.
Leave a Reply