Tesla 'quite likely' to meet Model 3 goal; Musk remains chairman

  • Tesla 'quite likely' to meet Model 3 goal; Musk remains chairman

Tesla 'quite likely' to meet Model 3 goal; Musk remains chairman

To do that, Tesla will probably have to meet Musk's manufacturing goals for its Model 3, a sedan with a starting price tag of $35,000 that represents the company's attempt to reach a mass market.

"We're confident we know how to address them and we are addressing them", Musk said, referring to production issues plaguing the Model 3.

Speaking at the shareholder meeting, Musk said Tesla should be able to produce 5,000 units per week of its flagship Model 3 electric sedan by the end of June.

A consumer data research organization recently suggested that customers are increasingly requesting refunds on their Tesla orders.

Speaking at Tesla's annual shareholders' meeting in Mountain View, Musk said despite what he called "a lot of difficulties", all production lines for the Model 3 are now capable of cranking out 500 cars a day.

Also, don't hold your breath for a Tesla motorcycle - Musk quashed hopes that the company would build one, citing an experience he had when he was almost killed while riding one.

Musk's comments came after shareholders re-elected three directors and voted against a proposal to wrest the chairman role from Musk. "We're not flawless but we pour our heart and soul into it and we really care".

Analyst Brian Johnson of Barclays warned investors in March to be wary, however, of brief "burst rates" of Model 3 production that were not sustainable.

In what may have been a joke response to a comment from a rep from People for the Ethical Treatment of Animals, or PETA, asking about removing leather from Tesla's steering wheels, Musk said the Model Y would have no leather in the vehicle including the steering wheel - if the new auto even has a steering wheel.

Musk told investors that an announcement about a China factory would come "really soon".

Tesla shareholders voted Tuesday to keep company founder and CEO Elon Musk in place as its chairman of the board, defeating a measure that sought to replace the mercurial tech entrepreneur with an independent executive.

Tesla, which has talked about building a factory in Europe for years, plans to announce a location later this year, Mr. Musk said.

The Model Y, Semi, and Roadster are the next Tesla vehicles to hit the road.

Arguing that the sprawling company has become hard to oversee, one investor proposed splitting the chairman and chief executive jobs, both of which Musk holds.

The delayed rollout of the Model 3 - which has a waiting list hundreds of thousands of buyers long - has been the source of extreme frustration inside the company and out, generating concerns among some analysts that Musk's manufacturing pronouncements can't be trusted.

Elon Musk will remain the chairman of Tesla's board of directors.

An individual shareholder had also put forth a proposal that would have required an independent chairman, which was backed by proxy advisers Institutional Shareholder Services and Glass Lewis, but was ultimately voted down.