It's been a loooooong time since I took corporate law, but ... I presume a Tesla shareholder could file a shareholder suit against the company for its continued employment of a CEO whose extracurricular activities are destroying the brand, no?
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That’s a lot to expect from Tesla shareholders who recently voted to award Musk 50-something billion dollar payout. If they cared about stock value they wouldn’t blow 50B on a guy who already has more money than conceivably usable.
I’m on a few different EV-related subreddits, and there are multiple posts daily about “I traded in my Tesla for an xxx.” Don’t see how the board can allow him to remain in place.
The shareholder problem is that the consumer bridge is already burned. Even if he's outed as CEO at some point, everyone knows his wealth is tied to Tesla. As long as he holds shares, and maybe longer, the brand will suffer.
IANAL but something like that would take years, if not a decade plus to come to trial. Presuming the courts would even sit for this suit, after the coming judicial removals.
To be substantive in response I am sure that Musk’s antics are turning off buyers. From the article it does seem to be a bigger issue in Europe. But counterpoints, 1.) Tesla was always vulnerable to challengers and it’s dominance was in large part to first mover advantage. Now lots of EVs are here.
2.) Presuming that Tesla is also gaining lots of benefits from the govt in various ways because of various extra curricular activities, it seems this tied to 1.) makes suits very hard as a sell.
To switch gears and be normative for a minute, I will reiterate some of the points I made to Paul Gowder a week ago, corporate law needs to be hands off and shareholder actions reigned in except in truly egregious obvious cases. It’s important for very broad latitude to allow for risk taking.
I suspect as long as Elmo is a significant shareholder a boycott of Tesla will continue. Tesla workers might as well start looking for work elsewhere. I hear RIVIAN is a much better vehicle anyway.
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