During its annual shareholder meeting Tuesday evening in Mountain View, CA. Tesla (TSLA) - Get Report shareholders voted that its board of directors are allowed to maintain staggered three-year terms versus having to face re-election at each annual meeting.
The motion had been proposed by a group of Connecticut pension funds that criticized the electric carmaker of stacking its board almost entirely with members personally or professional related to CEO Elon Musk.
Tesla currently maintains a classified board of directors, in which only a fraction of the members are elected each time instead of altogether.
Tesla has argued that the current terms allow the directors to do what is best for the company in the long run.
Without its classified board, the Palo Alto, Calif.-based firm said it might have ended up a "mere supplier" of electric vehicle components, rather than a maker of battery-powered cars.
Tesla also stated in its proxy statement that it might not have decided to build its battery gigafactory or network of stores, service centers and charging stations.
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