Elon Musk retains his chairman seat, promises Model 3 production on track

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Model 3 production

After the shareholders meeting and with Musk holding on to his chairman seat, Tesla stocks rose.

The internet was abuzz this week with Elon Musk potentially losing his chairman seat at Tesla. Some members of the board have been frustrated with Model 3 production and what some consider a lack of movement from the company. It’s understandable that investors and shareholders want to see their investment create something of value.

The shareholders meeting was interesting and Musk admitted that the last few months have been the “most hellish” of his life. In the end, Musk was not ousted and retained his chairman seat but also said that Model 3 production was on track.

Model 3 production has been a key sore spot for many. The Model 3 is the car that is supposed to bring Tesla into the mainstream with the company making it more attainable and affordable for the average consumer. As it stands now, the Model S and Model X are just a bit out of reach for many regular consumers. Musk also made it a point to let investors know how much effort the company is pouring into their cars.

It may sound “cheesy,” he told shareholders, but “we build our cars with love.” Competing cars, he said, are created based on the needs of automakers’ finance and marketing departments with “no soul.”

After the shareholders meeting and with Musk holding on to his chairman seat, Tesla stocks rose. This is likely on the strength of Musk’s reassurance that Model 3 production is indeed on track.

Following CEO Elon Musk’s announcement that the company should meet its Model 3 production goal of 5,000 cars per week this month (as well as a handful of other updates at the annual meeting), Tesla’s stock price spiked 9.74% on Wednesday. That generated a cool $1.1 billion in mark-to-market losses for short sellers, according to data from financial analytics firm S3 Partners.

“Today’s 37.7 million shares shorted and $11.0 billion in short interest will probably decline as short sellers cut their positions even further after incurring $1.1 billion in mark-to-market losses,” Ihor Dusaniwsky, managing director of predictive analytics at S3, said in an email.

Hopefully, Musk is correct and Model 3s should start being delivered to patient customers sooner than later.

What do you think of the results of the Tesla shareholders meeting? Do you believe Musk when he says Model 3 production is on track? Let us know your thoughts in the comments below or on Google+, Twitter, or Facebook.

  Source: LA Times  Source: Business Insider
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