DETROIT (AP) – Tesla Inc. is riding high as it hosts its annual shareholders’ meeting Tuesday.
Shares are trading at record levels, and Tesla has surpassed General Motors and Ford in market value. It’s about to introduce its first mass-market electric car, the Model 3 sedan, as well as a line of solar panels that look like roof tiles. CEO Elon Musk is also enticing fans with new vehicles, including a semi-truck it plans to show this fall.
But the company is not without its challenges. Here are three things shareholders will want Musk to address at the meeting.
CORPORATE STRUCTURE: Shareholders will vote Tuesday on a proposal to elect Tesla’s board members annually instead of for staggered, three-year terms.
A group of Connecticut pension funds is behind the proposal. They say annual election of board members improves accountability and can increase shareholder value. They also say conflicts of interest “plague” Tesla’s board. Musk’s brother, Kimbal, is a board member. Tesla’s lead independent director, Antonio Gracias, also serves on the board of Musk’s rocket company, SpaceX, and is the CEO of a private equity fund backed by Musk.