(FinancialPress) — Tesla‘s annual shareholders meeting bore very auspicious news. The carmaker relayed that it is on course to, finally, reach its weekly production targets. The news rocketed TSLA stock up by 10%.
Tesla has historically been plagued by production issues that prevented it from achieving its weekly targets – with automation being the most recent one. Because of this, the company‘s newest product, Model 3, has seen its production slowed considerably.
Several analysts felt that this was cause for concern, as they felt that the company could wind up out burning up all of its cash before replenishing it through sales. TSLA stock had dropped 20% since the beginning of the year before the announcement was made.
Investors were beginning to pressure the company‘s board to split Elon Musk‘s roles as CEO and chairman into two separate jobs. The suggestion‘s aim was to keep transparency as high as possible, and keeping the direction of the company in tandem with what the majority of its leadership truly wanted.
Shareholders decided to back Musk when the possibility was brought to a vote. His assurances of reaching the required 5,000 unit/week target by month‘s end were enough to quell their fears, and they chose to keep him in the double role. Those who chose to hold onto their stock won big; but those who shorted it suffered hefty losses.