Tesla's Musk tells disgruntled shareholders: Buy Ford
A group of Tesla Inc (TSLA.O) investors has urged the luxury electric car maker to add two new independent directors to its board, without ties to Chief Executive Elon Musk, to "provide a critical check on possible dysfunctional group dynamics."
A defiant Musk took to Twitter on Wednesday afternoon to suggest the investors buy stock in Ford Motor Co (F.N) instead. The Ford family controls the Detroit automaker through two classes of stock.
In a letter dated Monday, five investment groups including the California State Teachers Retirement System, Hermes Equity Ownership Services and CtW Investment Group urged Tesla to have all of its directors re-elected annually.
"We expect that as companies make the transition to publicly-traded status, the governance structures and practices in place at the time of the IPO will evolve to align with the company's changing strategy," the letter reads. "However, Tesla's seven-member board is largely unchanged from its pre-IPO days."
http://www.reuters.com/article/us-tesla-board-idUSKBN17E23Z
A group of Tesla Inc (TSLA.O) investors has urged the luxury electric car maker to add two new independent directors to its board, without ties to Chief Executive Elon Musk, to "provide a critical check on possible dysfunctional group dynamics."
A defiant Musk took to Twitter on Wednesday afternoon to suggest the investors buy stock in Ford Motor Co (F.N) instead. The Ford family controls the Detroit automaker through two classes of stock.
In a letter dated Monday, five investment groups including the California State Teachers Retirement System, Hermes Equity Ownership Services and CtW Investment Group urged Tesla to have all of its directors re-elected annually.
"We expect that as companies make the transition to publicly-traded status, the governance structures and practices in place at the time of the IPO will evolve to align with the company's changing strategy," the letter reads. "However, Tesla's seven-member board is largely unchanged from its pre-IPO days."
http://www.reuters.com/article/us-tesla-board-idUSKBN17E23Z
