Can you fire Elon Musk as CEO?

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nsaspook
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  • #2
TeethWhitener
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Typically the CEO of a corporation is hired and fired by the board of directors (who are voted into office by the shareholders). In this case, Musk is the chairman of Tesla's board of directors, but it's conceivable that he could be pushed out if there were enough willpower from the rest of the board. (FWIW--I doubt that's going to happen any time soon.)
 
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  • #3
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He certainly appears a bit unstable these past few months. Maybe the pressure is getting to him. My question is that he's talked about going private. In that case, does he still answer to a board of directors?
 
  • #4
TeethWhitener
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In that case, does he still answer to a board of directors?
Almost certainly. The exact answer depends on the laws of each jurisdiction as well as the corporation's bylaws, but many states require a board of directors as a prerequisite for incorporation (that is, for setting up certain types of corporations).
 
  • #5
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My son-in-law has been talking about putting a $1000 deposit on a Tesla automobile to get on the waiting list for a car sometime in the future (when it is finally produced). Do you think this is a good idea at this time?
 
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Typically
There's one relevant atypicality here. (Is that a word?) The SEC could find that Musk's recent tweets were an attempt at market manipulation and hold that he's ineligible to serve as an officer or director of a publicly traded corporation.
 
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  • #7
Bystander
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Do you think this is a good idea at this time?
Do you? Really? Chester?:rolleyes::wink:
 
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Vanadium 50
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Do you think this is a good idea at this time?
Do you? Really?
Do you feel lucky?

The corporations problems notwithstanding, you might want to Google "Tesla Repair" and "Tesla Repair Parts" to get a number of stories about the difficulties owners are having getting their cars fixed, including cars still under warranty.
 
  • #9
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Do you feel lucky?

The corporations problems notwithstanding, you might want to Google "Tesla Repair" and "Tesla Repair Parts" to get a number of stories about the difficulties owners are having getting their cars fixed, including cars still under warranty.
Hey,
My wife and I, as well as the rest of the family, think this is a terrible idea. I just wanted to see what you guys thought.
 
  • #10
StatGuy2000
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I had a chance to hear snippets of Elon Musk on Joe Rogan's podcast and I actually found most of the discussion to be quite interesting.

I am curious about the rest of you -- is the issue people are having is because Musk smoked a joint on air (which is legal in California, by the way)? Or have there been other examples of Musk behaving erratically? Or are the stocks for Tesla falling because issues inherent in the business (again, others on this thread have referred to the difficulties people who have purchased Tesla vehicles have in getting repairs done).

The more general question would be the future of the electric car in the market place. What is the demand for electric cars such as the Chevrolet Volt or Tesla? And if Tesla, say, goes under, what impact do any of you see for other auto manufacturers currently producing electric vehicles?

[As an aside, I personally don't see the problem with moderate consumption of marijuana, which if looked at objectively has relatively similar (although different) levels of harm to alcohol while also having certain health benefits.]
 
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  • #12
russ_watters
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I am curious about the rest of you -- is the issue people are having is because Musk smoked a joint on air (which is legal in California, by the way)?

[As an aside, I personally don't see the problem with moderate consumption of marijuana, which if looked at objectively has relatively similar (although different) levels of harm to alcohol while also having certain health benefits.]
Legal or not it is irresponsible to be drunk or high at work and very few companies would allow it.
Or have there been other examples of Musk behaving erratically?
There have been several other recent incidents.
Or are the stocks for Tesla falling because issues inherent in the business...
That's part of it, yes. Tesla is losing extraordinary amounts of money and even if it weren't, its stock value really makes no sense at all.
The more general question would be the future of the electric car in the market place. What is the demand for electric cars such as the Chevrolet Volt or Tesla? And if Tesla, say, goes under, what impact do any of you see for other auto manufacturers currently producing electric vehicles?
For the foreseeable future, these are fad/niche products, unless heavily subsidized by governments.
 
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  • #13
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[As an aside, I personally don't see the problem with moderate consumption of marijuana, which if looked at objectively has relatively similar (although different) levels of harm to alcohol while also having certain health benefits.]
I think it's more toxic to the liver etc. [than alcohol] ... , but I would have to check to be sure.
while also having certain health benefits.]
if you're lucky to avoid the negative and side effects ...
Legal or not it is irresponsible to be drunk or high at work and very few companies would allow it.
I think e.g. in Germany they do, not that I agree ...
 
  • #14
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its stock value really makes no sense at all.
Tesla has a market cap of $45B and $12B of sales. GM has a market cap of $47B and $146B of sales.

Or have there been other examples of Musk behaving erratically?
He claimed he was taking the company private and named a price, and claimed he had already secured funding. At best, this is erratic behavior. Other people would call it "securities fraud".
 
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  • #15
russ_watters
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My son-in-law has been talking about putting a $1000 deposit on a Tesla automobile to get on the waiting list for a car sometime in the future (when it is finally produced). Do you think this is a good idea at this time?
The answer to this question depends entirely on the reason why he's doing it. Some potential viable reasons:
1. Willing to spend money to wait in line for the hottest new toy.
2. Believes in Elon Musk and Tesla's cause enough to be willing to provide them an interest-free loan to help it.

I mean, I wouldn't, but I've heard of people putting down deposits to get in line for popular low-production rate telescope mounts, so who am I to begrudge that?
 
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  • #16
OmCheeto
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I had a chance to hear snippets of Elon Musk on Joe Rogan's podcast and I actually found most of the discussion to be quite interesting.
Aside from the AI stuff, I also found it quite interesting. I enjoyed the first 10 minutes, but had to fast forward to the last hour before it became interesting again.

I am curious about the rest of you -- is the issue people are having is because Musk smoked a joint on air (which is legal in California, by the way)?
As far as I can tell, he didn't inhale.
Or have there been other examples of Musk behaving erratically?
This is the first time I've ever watched Elon for more than 30 seconds, so I don't know if his current behavior is more or less erratic than before.
From what I didn't skim over, he reminds me of me.
Or are the stocks for Tesla falling because issues inherent in the business (again, others on this thread have referred to the difficulties people who have purchased Tesla vehicles have in getting repairs done).
Tesla's stocks have shown VERY high shifts since March of 2013. $100 seems to be the "norm". $20 is nothing.
And the stock seems to have rebounded to a "pre-toking" level.
Pre-toke: $280
Post-toke: $260
Currently: $280
[ref]
The more general question would be the future of the electric car in the market place. What is the demand for electric cars such as the Chevrolet Volt or Tesla? And if Tesla, say, goes under, what impact do any of you see for other auto manufacturers currently producing electric vehicles?
From what I've gathered, the demand for electric cars is higher than the supply.
[As an aside, I personally don't see the problem with moderate consumption of marijuana, which if looked at objectively has relatively similar (although different) levels of harm to alcohol while also having certain health benefits.]
I've been smoking dope for 45 years.
But like Elon, it's mostly just been an annoying drug that my friends try and make me smoke more of.
It works for them, but not for me.
A gram will generally last me about 3 or 4 years. Usually longer.
 
  • #17
OmCheeto
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Tesla has a market cap of $45B and $12B of sales. GM has a market cap of $47B and $146B of sales.
Elon also mentioned that Tesla and Ford are the only two American car companies that haven't gone bankrupt. [t = 1:52:25]
It's a tough business.
It was tough for me to watch him get teary eyed, when he discussed starting up his business, after the 2008 depression. [t = 1:53:46]
Joe; "How close did you get to folding?"
Elon; "Very close"

He claimed he was taking the company private and named a price, and claimed he had already secured funding. At best, this is erratic behavior. Other people would call it "securities fraud".
I would call it "pure genius".
But that's just me.

Video that I'm using as a reference:

 
  • #18
russ_watters
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As far as I can tell, he didn't inhale.
So not only is he doing drugs, but he's doing them poorly? This is supposed to increase my confidence level in him?
From what I've gathered, the demand for electric cars is higher than the supply.
While the supply is very tightly constrained, Tesla offered free charging and guaranteed resale value (being phased out) and the purchases heavily incentivized -- until the automaker sells 200,00 cars, which Telsa recently passed. So we will see if the demand continues to outstrip the supply as Tesla tries to pivot from being a gimmick to being a real company.
 
  • #19
OmCheeto
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...heavily incentivized...
Elon kind of covered the opposing view to that.

1:23:00 - 1:26:17

"...there is an inherent subsidy, in any oil burning device...

[ramble ramble ramble]

...it's just not paid for, now."
 
  • #20
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I would call it "pure genius".
So is it your position that it is a good thing when a corporation's CEO (and a major shareholder) manipulates stock prices by making materially false statements?

Or is it that it's only OK when Elon does it?
 
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  • #21
StatGuy2000
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So not only is he doing drugs, but he's doing them poorly? This is supposed to increase my confidence level in him?
Russ, you're equating "not inhaling" marijuana to doing drugs "poorly". Wouldn't a better analogy be "only sipping less than a small glass of wine"?
 
  • #22
russ_watters
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Russ, you're equating "not inhaling" marijuana to doing drugs "poorly". Wouldn't a better analogy be "only sipping less than a small glass of wine"?
I guess I don't really know. I don't smoke (anything), but my understanding was there isn't any point if you aren't taking the smoke into your lungs. So they either must be faking or not know what they are doing. It would be more like drinking without swallowing. Isn't that why people laughed at Bill Clinton when he said he didn't inhale?
 
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  • #23
russ_watters
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Elon kind of covered the opposing view to that.

1:23:00 - 1:26:17

"...there is an inherent subsidy, in any oil burning device...

[ramble ramble ramble]

...it's just not paid for, now."
That isn't part of most people's car buying decision process, so it isn't going to help his business. It's just a political complaint about the business environment not being fair. All the customers know is that a car that cost $35k last year costs $40k this year. That will affect demand.
 
  • #24
OmCheeto
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So is it your position that it is a good thing when a corporation's CEO (and a major shareholder) manipulates stock prices by making materially false statements?

Or is it that it's only OK when Elon does it?
It would have to be proven that it was a false statement.
A letter from the board of directors of Tesla said in effect that Elon's statement was true. [ref]
Still waiting on word from the SEC investigation. Anyone heard anything?
 
  • #25
StatGuy2000
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That isn't part of most people's car buying decision process, so it isn't going to help his business. It's just a political complaint about the business environment not being fair. All the customers know is that a car that cost $35k last year costs $40k this year. That will affect demand.
I suppose the key would be to what degree that customers would be sensitive to the increase in price from $35k to $40k, and how this change in the cost compares to other similar vehicles currently on the market (whether that would be other electric vehicles, traditional internal combustion vehicles, or hybrid vehicles such as the Toyota Prius, all of which are competitors to Tesla).
 

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