Some of Tesla’s (NASDAQ:TSLA) shareholders are opposing the nomination of J.B. Straubel, the company’s former Chief Technology Officer, to its Board of Directors. Investors are most concerned because, with Straubel’s appointment, at least five of the board’s eight members will lack independence.
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Straubel had been employed by the EV giant for about 14 years and was set to succeed independent director Hiromichi Mizuno. In 2019, he left the organization to launch his own startup that recycles batteries and waste produced by battery-cell manufacturers.
According to the shareholders’ group, the board’s independence is essential to policing CEO Elon Musk’s actions that could impact the company’s fame. Furthermore, the Group also believes that Musk has too much on his plate right now because, in addition to running Tesla and SpaceX, he is also busy overhauling Twitter.
It is noteworthy that at Tesla’s upcoming annual meeting, both Chair Robyn Denholm and Musk will be up for re-election to the board.
Is Tesla Stock a Buy, Sell, or Hold?
Analysts are cautiously optimistic about TSLA stock with a Moderate Buy consensus rating based on 17 Buys, 11 Holds, and four Sells. The average price target of $207.33 implies upside potential of 27.6% from the current level.