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Expect some drama at Tesla’s board meeting today

Expect some drama at Tesla’s board meeting today
[Photo: courtesy of Tesla]

On Tuesday, Tesla’s board will vote on whether to renew three members: Antonio Gracias, James Murdoch, and Kimbal Musk, the brother of company CEO Elon Musk.

In the last week, activist investor CtW has voiced opposition to the re-election of these board members, according to a filing with the SEC. “Especially in light of Chairman and CEO Elon Musk’s startling refusal to answer straightforward questions from analysts on a recent investor call, Tesla shareholders need to let the board know that it must raise its game and begin the long-overdue process of renewing its membership and processes by adding currently missing industry, governance, and human capital management expertise,” the filing said. Other investor groups have chimed in their support.

Steve Jurvetson is another question mark. The board member has been on extended leave after tensions over possible misconduct that ultimately lead him to abandon his role at DFJ and start his own venture firm.

The pressure from board members comes as Tesla is facing new reports about troubling conditions at its production facilities. The company has also failed to meet its own production target regarding its more affordable Model 3. In April, Tesla said it was producing 2,000 Model 3 cars per week—still below its goal of both 2,500 per week. It’s aiming to produce 6,000 per week by the end of June, according to Reuters. A recent report from Second Measure also notes that while Tesla continues to rack up reservations for this car, an increasing number of people who put down a deposit are asking for their money back. So far 23% of deposits have been refunded.

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