Tesla, Inc. (NASDAQ: TSLA) Chief Executive Officer Elon Musk faces opposition from investors at Tuesday's shareholder meeting that will challenge his control over the carmaking company.
With the company's focus on expediting "the move from a mine-and-burn hydrocarbon economy towards a solar electric economy," socially responsible should want to invest in the initiative. However, only about 86 of 1200 of the green investment funds tracked by Bloomberg own Tesla shares with seven counting Musk's company as a top 10 holding. In comparison to Facebook, which has had to deal with a data-privacy breaching scandal recently, still has 126 of the funds.
For investors, Tesla's board is lacking in manufacturing expertise with production bottlenecks for the Model 3 sedan in recent months, and it has been unable to pull its weight for its value in performance on social and governance issues. They are also unable to keep tabs on the company with the lack of a sustainability report.
Shareholders are expected to re-elect three Tesla directors and vote to allow Musk to keep his chairman title among concerns with manufacturing and production, according to a source at Reuters.
"We're making a bet on Elon Musk," said a top-20 Tesla investor to keep Musk's role, "these people are geniuses. You either believe in him or you don't."
Tesla shares are down 7% year-to-date.