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thewayneElon is unhappy. Boo and hoo. Since he made his horribly ill-advised offer to buy Twitter and was forced to follow through on the purchase, he's had to sell a lot of his shares in Tesla to keep himself and Twitter afloat: he now holds about 13% of its shares. He wants to remedy that, and his method is to whine to the Board of Directors of Tesla that if they don't award him another 12%, that he might take his toys and go elsewhere. Or invent his new toys elsewhere. Something like that.
This can go three ways, IMO. The board caves and awards him the additional shares. Now, the problem is that the board has troubles of its own, having faced lawsuits and government inquiries that they've been a little too free with giving themselves money. This might look like more of the same and could land them in more hot water. In fact, some board members are banned from taking any compensation for multiple years!
Or they could say no bueno. In which case the Muskbrat walks. Or he doesn't. I expect he has additional remunerations with Tesla that vest over time. If he walks, he'll lose that. So walking wouldn't be in his best interest. And if he walks, and they bring in someone who actually knows how to run a car company who brings in some good managers and innovators who make some serious improvements there - and lord knows they need 'em! - he's going to look like the buffoon that he is.
If he stays, and doesn't get his shares, it's an empty threat. He just lost any leverage opportunity with the Board for negotiating in the future. Which could have some interesting consequences as time goes by. Now, the thing is, it's a Musk Family Crony Board. They probably lean towards caving, or at least negotiating, but there's that whole 'enrichment' investigation stuff fresh in their minds and still hanging over them.
Not a good time! Well, a good time for the popcorn-munching fans of slow-moving disasters, perhaps. :)
https://gizmodo.com/elon-threatens-to-build-products-outside-of-tesla-unles-1851168957
This can go three ways, IMO. The board caves and awards him the additional shares. Now, the problem is that the board has troubles of its own, having faced lawsuits and government inquiries that they've been a little too free with giving themselves money. This might look like more of the same and could land them in more hot water. In fact, some board members are banned from taking any compensation for multiple years!
Or they could say no bueno. In which case the Muskbrat walks. Or he doesn't. I expect he has additional remunerations with Tesla that vest over time. If he walks, he'll lose that. So walking wouldn't be in his best interest. And if he walks, and they bring in someone who actually knows how to run a car company who brings in some good managers and innovators who make some serious improvements there - and lord knows they need 'em! - he's going to look like the buffoon that he is.
If he stays, and doesn't get his shares, it's an empty threat. He just lost any leverage opportunity with the Board for negotiating in the future. Which could have some interesting consequences as time goes by. Now, the thing is, it's a Musk Family Crony Board. They probably lean towards caving, or at least negotiating, but there's that whole 'enrichment' investigation stuff fresh in their minds and still hanging over them.
Not a good time! Well, a good time for the popcorn-munching fans of slow-moving disasters, perhaps. :)
https://gizmodo.com/elon-threatens-to-build-products-outside-of-tesla-unles-1851168957
