Access insights and should I Invest In Tesla Shares from our Wall Street pros. Find the product that’s right for you. Should Tesla Actually Fire Elon Musk? Elon Musk’s comments over the weekend may put the Tesla board of directors in a pickle. CEO Elon Musk made some rather disparaging remarks regarding a British cave diver who aided in the rescue of 12 boys trapped in a cave in Thailand.
Taking a quick step back, after some call-to-action on Twitter, Musk said he would try to assist in the dangerous cave-dive rescue. He had some of his top engineers design and test a miniature submarine that could hold one of the children while professional cave divers guided it out to safety. Although the capsule was flown to Thailand, it was never used. While Musk has provided proof that the project was encouraged by and coordinated with those on the rescue team, many others have seen Musk’s actions as a PR stunt. That raised some eyebrows, but not quite as high as when Musk retorted on Twitter, saying, “You know what, don’t bother showing the video. Sorry pedo guy, you really did ask for it.
To a tweet that criticized Musk for calling the diver a pedophile, Musk responded with, “Bet ya a signed dollar it’s true. So this obviously has people in the Tesla community talking. I don’t personally know Musk and the same can be said of Unsworth. However, that’s a pretty serious claim to make on Twitter and in what was probably a smart move, Musk has since deleted the tweets. But the rocks have been thrown and the damage has been done. Unsworth has said the matter is not over as he weighs whether to sue Musk for his remarks.
What Now for Tesla and Musk? All of this brings up the question of whether the Tesla board of directors should do anything to Musk at this point. Various users on Twitter, Reddit and elsewhere have questioned how the board can continue to back the CEO and co-founder. Others have asked whether Musk should be removed from the CEO role as a result.
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At this point, though, that seems pretty unlikely. While theoretically it’s possible, what would become of Tesla without its leader? But would Tesla do the same? I’m not defending Musk’s comments or putting him up on some kind of pedestal. But this guy owns almost 34 million shares and is the largest shareholder among both individual and institutional stakeholders.
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At the company’s recent annual meeting last month, shareholders overwhelmingly supported Musk staying on as both chairman and CEO of Tesla. Say the headline tomorrow read: “Musk Resigns From Tesla Board, CEO Role. The stock would be hammered and there’s no getting around that. The idea that someone else could run Tesla is certainly plausible.