Tesla shareholders continue to support Ilon Musk. They proved this at the company's annual General Meeting on Tuesday evening. Most of the current investors voted against the new regulations aimed at improving the corporate management criticized by Tesla.
Previously, the company said it expected to deliver between 90,000 and 100,000 cars in the second quarter, but the demand topic remains valid after the disappointing first quarter of delivering just 63,000 cars. This contributed to the drop in share prices by around 35 percent so far from the beginning of this year. But Mssk was optimistic, claiming that the company's sales "far exceeded" the production volume.
So, after appearing on Tuesday in Mountain View, California, after a difficult year, Mush managed to reverse shareholders. "I want to say something very clear: there is no problem with demand," he said, "sales will go far beyond production." And production is doing well, "he added. This message was well received by investors, and the share price increased by over 5.3 percent on the secondary market. This increase is added to the growth of the regular session by almost 2 percent to $ 217.10 in New York.
There have been doubts recently about whether there is still a need for Tesla cars. In one of the studies, analyst Morgan Stanley, Adam Jonas, wrote, for example, that the demand for production may not be enough. Tesla shares no longer describe the history of growth, but the history of restructuring, he wrote. Jonas, who set a target price of $ 379 a year ago, now claims that their worst-case scenario will cost $ 10.
More and more competitors use the trend in electric cars and e-cars, and according to critics, Tesla can end its corporate life as a small niche player. What's more, until today Tesla smokes a huge amount of money. Since December, shares have shrunk by almost a half.
And in August last year, Musk himself upset investors when he spoke roughly on Twitter that he would take a company from the stock exchange to give up later than the idea. The Stock Exchange Supervisory Commission, the Securities and Exchange Commission, intervened and started a price manipulation test, and Tesla chief agreed to a penalty and strengthened control over the company. Among other things, the Mouse had to resign from the position of the president of the board. Now he can act only as a CEO.
If the General Meeting passed the will of shareholders, the members of the Board of Directors would have to limit their seats from three to two years. In addition, in the future, a simple majority of important decisions would be needed so that the founder and his allies would not have such a high level of power on the board. These measures were proposed by the Board of Directors itself to alleviate criticism.
But of course most of the shareholders did not want to be protected by Ilona Muska, but rather the reverse: rather give him the greatest possible freedom: both claims were rejected.
Mouss went to the finance of an electric car manufacturer. "If you're a fast growing company, profitability is always a challenge," he admitted, but the manager plans to increase production by 60% to 80% this year, with only such gains that can achieve positive cash flow.
As for the cars themselves, Mssk promised more autonomy. "We will soon have a 400-mile car," he said, almost 650 kilometers away, and Tesla's chief, in terms of autonomy, was convinced that every car manufactured from October 2016 could be set to achieve full autonomy, no regulatory approval. "This significantly increases the value of our cars," says Musk. "Actually, I think it's financial madness to buy something other than an electric car that can be upgraded to an autonomous one," he said.
Mountain View Musk sent a message to Europeans: By the end of the year, he plans to decide on the location of the battery factory and the car factory. "I am convinced that we need our own factories for our cars in Europe and Asia," he said, allowing Tesla to bypass tariffs and expensive shipping routes and cheaper local markets.
Muss also told shareholders that they could expect to receive Tesla before the end of summer 2019. And to produce a larger electric truck by the end of 2020.
– Tesla owners in Silicon Valley (@teslaownersSV) June 11, 2019
In addition to the meeting place at the Computer History Museum in Mountain View, California, Tesla showed the prototypes of his upcoming Roadster, Semi and Model Y, allowing fans and shareholders to share photos on social networks.