OK. This is an interesting move. The assumption is that Tesla IS Musk and Musk is Tesla. As such if Musk goes so too does the company. America’s most likable crony capitalist (remember, this is a relative term, every crony capitalist exploits the taxpayer and or government) is laying cards on the table.
But it’s as bizarre a move as it is interesting because the SEC wasn’t even aiming to remove Musk, despite the charged and alleged fraud. The settlement the SEC gave Musk was actually pretty good. A $20 million fine and he has to step down from the chairmanship for two years. He got to remain CEO.
Not bad considering Musk did say that he had funding to take Tesla private via Twitter when he didn’t. That did happen. He screwed up, big time. However he was essentially let off the hook. But that isn’t good enough for him?
Shareholders have got to be scratching their heads. (And maybe selling their shares.)
“What it tells us is this board, as a strategic plan, must be using the Jim Jones-Jonestown suicide pact,” Jeffrey Sonnenfeld, a professor at the Yale School of Management, said Friday on CNBC. “They are drinking the Kool-Aid of the founder.”
The “Tesla’s going to zero” guys are looking better and better these days.