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Tesla shareholders vote in favor of keeping Elon Musk as Chairman

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Tesla (NASDAQ:TSLA) is keeping Elon Musk as chairman of its board. During Tesla’s 2018 Annual Shareholder Meeting, which was held at the Computer History Museum in Mountain View, CA on Tuesday at 2:30 p.m. PST, shareholders ultimately decided to allow Musk to stay as both CEO and chairman of Tesla’s board of directors.

The results of the vote come as a vote of confidence for Musk, who has battled online criticism on a heightened scale since Tesla’s first-quarter earnings call, where he refused to answer inquiries from Bernstein and RBC analysts due to the questions being “boring and boneheaded.” Apart from this, Musk also continues to battle a consistent stream of doubts about Tesla’s ability to meet its ever-elusive Model 3 production goals.

The challenge to Musk’s authority as chairman of Tesla’s board came in April, when shareholder Jing Zhao, who owns 12 shares of the company’s common stock, submitted a proposal calling for Musk’s removal from his chairman post. According to Zhao, Tesla’s growing size, as well as Musk’s commitments to SpaceX and The Boring Company, might cause “conflicts” down the road. Proxy advisers Institutional Shareholder Services (ISS) and Glass Lewis supported Zhao’s proposal.

During the 2018 Annual Shareholder Meeting, however, the initiative to remove Elon Musk as Tesla’s chairman came to an unsuccessful end, as investors opted to keep the serial tech entrepreneur at the head of the company by “more than a super majority vote.”

In a report on Tuesday, analysts from Needham & Co. stated that Tesla’s Annual Shareholder Meeting would ultimately be all about the Model 3’s production ramp rates. The firm, which has a “Hold” rating on Tesla stock, also stated that it expects Model 3 production to turn profitable by 2019. Needham analysts further indicated that Tesla should see a near-term benefit as it starts delivering the Model 3 Performance, which costs $78,000 with all options except Autopilot.

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“Margins and average selling price should see some near-term benefit as Tesla starts delivering the Performance version of Model 3 (fully loaded at $78K), but in order to reach the target gross margin of about 25%, the Model 3 needs to sell all configurations including the base model, which won’t come until 2019 at the earliest. Tesla should be able to generate more than $10K/car it sold, and if Model 3 ramps well in the next few quarters, its cash flow will substantially increase.” the analysts wrote, according to a Barron’s report.

Tesla is currently attempting to hit a production rate of 5,000 Model 3 per week by the end of Q2 2018. While the compact electric car’s manufacturing has had its setbacks over the past few quarters, recent reports about the Model 3 line are starting to get more positive. In May alone, Tesla registered a record 18,000 new Model 3 VINs, a number that was matched only by the company’s production of the vehicle from mid-2017 to March 2018.

A leaked email from Elon Musk further revealed that the Model 3 line is now at a consistent rate of 3,500 vehicles per week. By the end of May, reports also emerged stating that Tesla is flying in six airplanes’ worth of new robots and equipment from Europe. These robots, which are reportedly set to be installed in Gigafactory 1, are expected to address further production bottlenecks in the Model 3 battery module line.

As of writing, Tesla stock is trading up 0.16% at $291.14 per share during after-hours trading.

Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Investor's Corner

Tesla welcomes Chipotle President Jack Hartung to its Board of Directors

Tesla announced the addition of its new director in a post on social media platform X.

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Credit: @ArthurFromX/X

Tesla has welcomed Chipotle president Jack Hartung to its Board of Directors. Hartung will officially start his tenure at the electric vehicle maker on June 1, 2025.

Tesla announced the addition of its new director in a post on social media platform X.

Jack Hartung’s Role

With Hartung’s addition, the Tesla Board will now have nine members. It’s been a while since the company added a new director. Prior to Hartung, the last addition to the Tesla Board was Airbnb co-founder Joe Gebbia back in 2022. As noted in a Reuters report, Hartung will serve on the Tesla Board’s audit committee. He will also retire from his position as president and chief strategy officer at Chipotle, and transition into a senior advisor’s role at the restaurant chain, next month.

Hartung has had a long career in the Mexican grill, joining Chipotle in 2002. He held several positions in the company, most recently serving as Chipotle’s President and Chief Strategy Officer. Tesla highlighted Hartung’s accomplishments in a post on its official account on X.

“Over the past 20+ years under Jack’s financial leadership, Chipotle has seen significant growth with over 3,700 restaurants today across the United States, Canada, the United Kingdom, France, Germany, Kuwait and the United Arab Emirates. Jack was named ‘CFO of the Year’ by Orange County Business Journal and Best CFO in the restaurant category by Institutional Investor,” Tesla wrote in its post on X.

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Tesla Board and Musk

Tesla is a controversial company with a controversial CEO, so it is no surprise that the Board of Directors tend to get flak as well. Two weeks ago, for example, Tesla Board Chair Robyn Denholm slammed The Wall Street Journal for publishing an article alleging that company directors had considered a search for a potential successor to Elon Musk. Denholm herself has also been criticized for offloading her TSLA shares.

More recently, news emerged suggesting that the Tesla Board of Directors had formed a special committee aimed at exploring a new pay package for CEO Elon Musk. The committee is reportedly comprised of Tesla board Chair Robyn Denholm and independent director Kathleen Wilson-Thompson, and they would be exploring alternative compensation methods for Musk’s contributions to the company.

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Rivian stock rises as analysts boost price targets post Q1 earnings

Rivian impressed with smaller-than-expected losses & strong revenue, pushing analysts to raise price targets.

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(Credit: Rivian)

Rivian stock is gaining traction as Wall Street analysts raise price targets following the electric vehicle (EV) maker’s first-quarter earnings report. Despite a dip after the announcement, optimism surrounds Rivian’s cost control and upcoming lower-priced cars.

Last week, Rivian reported a better-than-expected Q1 gross profit, surpassing Wall Street’s forecasts with adjusted losses of $0.48 per share against expectations of $0.92 per share. The company also reported a revenue of $1.24 billion compared to the $1.01 billion anticipated.

However, the EV automaker cut its 2025 delivery forecast and capital spending due to President Donald Trump’s tariffs. It explained that it is “not immune to the impacts of the global trade and economic environment.” RIVN stock dropped nearly 6% post-earnings, closing at $12.72 per share.

Wall Street remains upbeat about Rivian, citing progress toward launching lower-priced vehicles in 2026 and effective cost management. On Monday, Stifel analyst Stephen Gengaro raised his RIVN price target to $18 from $16, maintaining a “Buy” rating. He highlighted Rivian’s “solid progress” toward key milestones.

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Conversely, Bernstein’s Daniel Roeska gave RIVN a “Sell” rating. However, Roeska also lifted his Rivian price target to $7.05 from $6.10, acknowledging “better” Q1 results. He warned that profitability remains distant and hinges on multiple product launches by the decade’s end.

Overall, Wall Street’s average price target for RIVN climbed from $14.18 to $14.31, a modest 13-cent increase reflecting positive sentiment. About one-third of analysts covering Rivian rate it a Buy, compared to the S&P 500’s average Buy-rating ratio of 55%.

On Monday, Rivian stock rose 2.7% to $14.64, slightly trailing the S&P 500 and Dow Jones Industrial Average, which gained 3.3% and 2.8%, respectively. The uptick may also stem from broader market gains tied to news of a temporary U.S.-China tariff suspension.

As Rivian navigates trade challenges and scales production at its Illinois factory, its Q1 performance and analyst support signal resilience. With lower-priced EVs on the horizon, Rivian’s strategic moves could bolster its position in the competitive EV market, offering investors cautious optimism for long-term growth.

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Tesla (TSLA) poised to hit $1 trillion valuation again amid reports of Trump China deal

TSLA stock was up about 8% at $322.56 per share on Monday’s premarket.

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(Credit: Tesla)

Tesla shares (NASDAQ:TSLA) are on a tear on Monday’s premarket amidst reports that the United States and China have agreed to significantly roll back tariffs on each other’s goods for an initial 90-day period.

As of writing, the premarket price of TSLA shares suggests that the electric vehicle maker might end Monday with a $1 trillion valuation once more.

Tesla and China

TSLA stock was up about 8% at $322.56 per share on Monday’s premarket. As noted in a report from Barron’s, these prices suggest that the company could achieve a trillion-dollar valuation again, a level not seen since late February. Similar to Tesla, the S&P 500 and the Dow Jones Industrial Average were also up 2.8% and 2.1%, respectively, on Monday’s premarket.

The United States and China’s decision to roll back its tariffs would likely be appreciated by CEO Elon Musk. Despite working for the Trump administration’s Department of Government Efficiency (DOGE), and despite Tesla being least affected by the Trump administration’s tariffs due to its strong domestic supply chains in the United States, China, and Europe, Musk has noted that he is a supporter of non-predatory tariffs.

The United States and China’s Agreement

In a joint statement from the United States and China posted on the White House’s official website, the two countries agreed to lower reciprocal tariffs on each other by 115% for 90 days. This means that the United States will temporarily lower its overall tariffs on Chinese goods from 145% to 30%, as noted in an ABC 12 report. China, on the other hand, will also lower its tariffs on American goods from 125% to 10%.

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The talks were led by Chinese Vice Premier He Lifeng and Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, as per the joint statement. Bessent shared his thoughts about the matter in a comment in Geneva. “The consensus from both delegations is neither side wants to be decoupled, and what have occurred with these very high tariffs … was an equivalent of an embargo, and neither side wants that. We do want trade. We want more balance in trade. And I think both sides are committed to achieving that,” he said. 

A spokesperson from China’s Commerce Ministry also shared a statement about the matter. As per the spokesperson, the deal was an “important step by both sides to resolve differences through equal-footing dialogue and consultation, laying the groundwork and creating conditions for further bridging gaps and deepening cooperation.”

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