Tesla shareholders reject bid to strip Musk of chairman role

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Tesla Inc (TSLA.O) shares rose 3.5 percent on Wednesday morning after Chief Executive Elon Musk said the vehicle maker was now churning out 500 of its Model 3 sedans a day and should achieve its 5,000 per week target by the end of June.

At the Tesla shareholder meeting, Elon Musk announced that Tesla vehicle owners might soon get a chance to test out Autopilot again through a free trial.

One new possible Model that Musk mentioned is a compact auto smaller than the Model 3, which he said could arrive within five years. Missed targets for the Model 3 contributed to the company burning through more than US$1bn in three of the last four quarters.

The Tesla chairman and CEO also offered updates on some future products, including the long-awaited $35,000 version of the Model 3. The rate of stationary storage deployment is going to grow exponentially.

"The biggest constraint on output is general assembly", said Musk.

Elon Musk has survived a bid to strip him of a key role at Tesla as shareholders re-elected three directors to the electric auto maker's board.

Perhaps most notable was in the announcement was news that Tesla will bring a compact auto to market within the next five years. "At Tesla, we build our cars with love".

Leading up to the shareholder's meeting, several proxy advisory firms raised concerns about a lack of independence among Tesla's board of directors.

"While we do not model GAAP profitability for conservatism, we believe TSLA will be able to achieve sustainable operating cash flow and operating profit in the intermediate-term, which would be a significant catalyst, in our opinion".

"The Board believes that the Company's success to date would not have been possible if the Board was led by another director", the board said. The company's structure requires two-thirds backing for a shake-up.

"Everyone is so focused on the short-term, but on long-term goals, they are actually ahead of schedule".

Although Musk hasn't yet said how much the Model Y will cost when it goes on sale, he added Tuesday that the automaker expects to cross a key battery-cost threshold of $100-per-kilowatt-hour later this year. If you look at analyst reports just three years ago, that cost for battery cells would've been unheard of.

"Second Measure" contends that configurations are also growing, which tripled in April from the year-earlier period, according to the data analysis.