Tesla appoints new board member and audit committee member

Tesla, Inc. (NASDAQ:TSLA), the $1.1 trillion market cap electric vehicle giant, announced the appointment of John R. Hartung as a new member of its Board of Directors and as a member of the Audit Committee, effective June 1, 2025. The decision was made public through a filing with the Securities and Exchange Commission on Friday, May 16, 2025. According to InvestingPro data, Tesla maintains a GOOD financial health score, with strong cash flows and profitability in the last twelve months.

Mr. Hartung’s relationship with Tesla extends through a family connection, as his son-in-law has been employed as a non-executive, salaried Service Technician at the company since December 2016. It was noted that his son-in-law’s compensation for fiscal year 2024 was approximately $124,000, which aligns with Tesla’s compensation practices for employees with similar qualifications and responsibilities.

Tesla clarified in the filing that there are no related party transactions between Mr. Hartung and the company that would necessitate disclosure under SEC regulations. Furthermore, Mr. Hartung has chosen to forego any cash compensation and will join other board members in waiving equity compensation until the board makes new decisions regarding such matters.

The appointment of John R. Hartung comes as Tesla continues to strengthen its corporate governance and oversight with experienced professionals. The company, headquartered in Austin, Texas, is known for its innovative electric vehicles and energy solutions.

This update is based on a press release statement issued by Tesla and filed with the SEC.

In other recent news, Tesla has made significant updates to its leasing policy, allowing U.S. customers to purchase their vehicles at the end of their lease, a change from the previous policy aimed at supporting a "robotaxi" network that never materialized. Instead, Tesla has been reselling these returned vehicles, enhancing them with software upgrades, and selling them to new customers at a premium. Additionally, Tesla’s board has formed a special committee to review CEO Elon Musk’s compensation, potentially leading to a new stock options package contingent on meeting specific targets.

Cantor Fitzgerald has maintained its Overweight rating on Tesla stock, with a $355 price target, despite a notable decline in vehicle sales across several European countries, including a 62% drop in the UK. The firm remains optimistic about Tesla’s future, suggesting potential returns above the average of other companies in its coverage universe over the next 12 to 18 months. Meanwhile, Tesla and other leading tech stocks, part of the "Magnificent Seven," experienced a decline in premarket trading, amid a general downturn in U.S. stock futures.

These developments come as Tesla navigates a challenging period, particularly in the European market, where competition in the electric vehicle sector is intensifying.

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