BlackRock Wants A Non-Musk Chairman For Tesla Inc (TSLA)

Tesla Inc (NASDAQ:TSLA) CEO Elon Musk may have a new battle on his hands over the potential direction of his company.

As Reuters reports, the largest asset manager in the world voted to install a new chairman for the company:

Funds run by BlackRock Inc voted in favor of a recent shareholder proposal that would have required Tesla Inc to replace Elon Musk with an independent chairman.

BlackRock-managed funds voted for a measure requiring the chairman be an independent director, according to BlackRock’s filing with the U.S. Securities and Exchange Commission on Thursday. The proposal, which was defeated, would not have affected Musk’s standing as Tesla’s chief executive officer.

The proposal was roundly rejected by a vote of approximately 86 million to 17 million, but it’s important to note that such a measure would have been pretty much unthinkable just six months ago. In that period, Tesla has endured production issues, an SEC investigation over a failed bid to take the company private, and concerns over Musk’s physical and mental health.

Tesla Inc shares closed at $301.66 on Friday, down $1.49 (-0.49%). Year-to-date, TSLA has declined -3.11%, versus a 9.71% rise in the benchmark S&P 500 index during the same period.

TSLA currently has a StockNews.com POWR Rating of C (Neutral), and is ranked #9 of 24 stocks in the Auto & Vehicle Manufacturers category.