Tesla shareholder meeting: Elon Musk to remain CEO? Tesla to launch new models?

Last updated:
Tesla shareholder meeting highlights

Tesla share price jumped about 5% on May 17, 2023 after the company’s CEO Elon Musk rubbished rumors during the company’s annual shareholder meeting that he might step down from the helm of the electric vehicle maker.

Investors at the company’s shareholder meeting paid keen attention towards the company’s future plans for its electric vehicle sales in different geographies and expansion plans. Tesla’s plans to maintain positive operating margins which had taken a recent hit due to the massive price cuts the company announced due to faltering demand was also a point of focus. 

Tesla, which is the market leader in the EV space, will also advertise its cars in different markets - something which the vehicle manufacturer never did due to steady demand for its cars. 

Tesla has been facing demand issues of late due to the rise of newer EV makers like Rivian, Fisker and new EV models being launched by legacy carmakers like Ford and GM. 

This rising competition pushed Tesla to cut down prices of its cars in the North American and Chinese markets.

Tesla share price: Historical Performance

Tesla shareholder meeting: Tesla to launch new Models? 

During Tesla's annual shareholder's meeting in 2023, CEO Elon Musk provided hints about two upcoming electric vehicles. Musk emphasized that the company is actively engaged in building and designing a new product. He further stated that both the product design and manufacturing techniques surpass industry standards. 

According to the presentation made, experts said the new product could be a hatchback and might be priced around $25,000. However, Musk clarified that this meeting was not the appropriate venue for a product announcement, assuring that a proper product launch would take place in due course. 

Tesla shareholder meeting: CEO Musk to remain at the top

According to a report by Reuters News, shareholders voted to appoint the company's co-founder and former chief technology officer, JB Straubel, to the board. Proxy advisory firm Glass Lewis had urged investors to vote against Straubel's appointment, citing worries about his independence.

Straubel, who is CEO of battery recycling and materials company Redwood Materials, is considered a potential successor to Musk, according to Gene Munster, managing partner at Deepwater Asset Management.

This had raised speculation that Musk might step down as CEO, rumors which Elon Musk rubbished during the conference. 

Tesla share price: In other news

Top executives of the company are planning to launch their first factory in India, according to Economic Times, for domestic sales and export as the company looks to enter into the Indian vehicle market. India’s EV market space is still in the nascent stage and is expected to rise as the country plans to go entirely carbon neutral by 2050.

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.