A new SUV, the Model Y, from Tesla will be built at a new factory, according to Tesla CEO Elon Musk. The Model Y will be built from the ground up on its own platform, rather than sharing a platform with other Tesla vehicles. Musk says he’s giving serious consideration to three factories in the U.S., and maybe 10 or 20 globally. Shareholders are eating it up. Tim Higgins reports at the Wall Street Journal:
“We actually made a mistake in trying to derive the Model X from the Model S platform,” he said. “It would’ve been better to just design an SUV the way an SUV should be designed. Design a sedan, the way a sedan should be designed. Otherwise, you’re just trying to shoehorn something that doesn’t make sense.”
Asked how many factories are in the works, Mr. Musk said he is giving “serious consideration” to three factories and ultimately at least 10 globally and maybe as many as 20.
At the meeting, shareholders gave Mr. Musk a vote of confidence by rejecting a proposal to require an annual election of board members.
The Connecticut Retirement Plans and Trust Fund had proposed to change the Silicon Valley company’s corporate governance as part of a bid, it said, to address concerns about the board’s independence. It noted in a letter to shareholders that Mr. Musk’s brother, Kimbal, has served on Tesla’s board since 2004 and that three other members have business relationships with the CEO.
Board members serve staggered three-year terms. Mr. Musk had mocked calls for changes to Tesla’s board on Twitter in April, saying investors making that claim “should buy Ford stock. Their governance is amazing…”
Mr. Musk told shareholders Tuesday that Tesla is interviewing independent director candidates and could add two or three people to the board. He said Tesla could make an announcement in the next month or two.
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