Letter urges shareholders to reject CEO pay plan and boot two board members.
He wants to cash out before Tesla will crash and burn. Predictions are that Tesla is bankrupt in 5 years.
Guy should slow it down with the withdrawals from Homie Equity Line Of Credit, Tesla is getting stampeded by the more established manufacturers left and right and I don’t really see what he should be compensated for, apart from apparently trying to use the company as his personal piggy bank.
In the last few years they’ve lost the budget EV market to Chinese manufacturers despite BYD cars burning down like candles in a forest fire, conservative German manufacturers like Daimler have caught up in regards to autonomous driving and are making further progress, products are stuck in development hell etc. etc.
It’s a really valid point to raise – what exactly has he done lately to deserve the payout? The situation in 2018 was a bit different, but the amount would’ve been well on the outrageous side even back when the stock was rocketing and the recent controversies weren’t all yet a thing.
It makes you wonder why he needs the payout. I just listened to a podcast about Michael Jackson (Timesuck if you’re curious, highly recommend it) and he talked about how Jackson was in massive debt by the end and was prepping for a tour to make money to pay back his debts right before he died. The host pointed out it doesn’t matter how rich you are, you can always overspend.
Obviously, at billionaire level the debt isn’t going to be with luxuries and goods. Could it be debt to other billionaires or countries made under the table? He’s shown in recent years that he’s not the business genius he tried to pretend he was, so it wouldn’t be that far fetched.
Well, he did buy an entire social media platform he then did his best to sink.
On top of that, despite my explicit hatred for Ford as a brand, I have do admit that the rental I have this week is really fun: an electric Ford Mustang.
I don’t see Tesla offering anything anymore that isn’t done better and with more quality by other brands who have had decades of experience with quality control.
This is the best summary I could come up with:
The group’s letter also urged shareholders to vote against the reelection of board members Kimbal Musk and James Murdoch.
“Tesla is suffering from a material governance failure which requires our urgent attention and action,” and its board “is stacked with directors that have close personal ties to CEO Elon Musk,” the letter said.
“There are multiple indications that these ties, coupled with excessive director compensation, prevent the level of critical and independent thinking required for effective governance.”
We believe that the distractions caused by Musk’s many projects, particularly his decision to buy Twitter, have played a material role in Tesla’s underperformance," the letter said.
Tesla’s reputation has been harmed by Musk’s “public fights with regulators, acquisition of Twitter, controversial statements on X, and his legal and personal troubles,” the letter said.
The letter was sent by New York City Comptroller Brad Lander and investors including Amalgamated Bank, AkademikerPension, Nordea Asset Management, SOC Investment Group, and United Church Funds.
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