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> Under the terms of the deal, Musk and Tesla would have had to pay a nominal fine, and he would not have had to admit any guilt. However, the settlement would
by denzil_correa 8y ago
> Under the terms of the deal, Musk and Tesla would have had to pay a nominal fine, and he would not have had to admit any guilt. However, the settlement would have barred Musk as chairman for two years and would require Tesla to appoint two new independent directors, reported CNBC's David Faber, citing sources.
I don't think the fine was a problem here for Musk.
- ckastner 8y agoIronically, barring him for two years and appointing two new independent directors would probably be a huge win for Tesla.
- toomuchtodo 8y agoI think it'd be a huge win for short term Tesla investors and Tesla, but not long term investors. Tesla's financials should be pushed as hard as possible to enable scaling rapidly (every dollar not needed in opex should be going to capex or r&d). Independent directors (in my opinion) would prioritize saving Tesla as an ongoing concern, even if it meant they remained a small boutique manufacturer (vs growing into an energy storage powerhouse). TL;DR I want Captain Ahab at the helm, chasing his White Whale, swinging for the fences. I don't want Bob Lutz or Lee Iacocca.
- draggnar 8y agoBy long term do you mean less than two years? He could have come back after two years of boring leadership.
- compcoffee 8y ago>TL;DR I want Captain Ahab at the helm, chasing his White Whale, swinging for the fences. I want people with the integrity not to commit securities fraud.
- toomuchtodo 8y agoMorality is shades of gray. Nobody died, and I have yet to see the damages done by his statements quantified. You and I want different values in leaders, and that's okay.
- notfromhere 8y ago"nobody died" is the standard now?
- deleted 8y ago[deleted]
- TeMPOraL 8y agoNo, but "I was high and tweeted some nonsense" shouldn't be a standard either. I'm not saying Musk should get off scot-free, but it'll be sad to see Tesla suffer, when companies like e.g. Uber or Equifax, for which dishonesty and negligence is standard operating practice, continue to function with no consequences. But then, I guess the universe isn't fair.
- Cthulhu_ 8y agoWhat about the people that would benefit from Tesla's stocks dropping and did a big media push to highlight Tesla cars' shortcomings? It's not normal for a car accident to be in the media for weeks afterwards.
- rory096 8y agoTesla's board has 9 directors. Barring Musk from the chairmanship doesn't preclude putting a loyalist in to replace him. I don't see how 2/9 non-chairman directors being independent creates a drastic about-face in company policy.
- mrfredward 8y ago>I think it'd be a huge win for short term Tesla investors and Tesla, but not long term investors. I'd say the opposite. Kicking out Musk will kill the stock price as the cult members sell, but in the long run Tesla might be better off being run by someone boring, as opposed to an unstable CEO who divides his attention a million ways and seems hell-bent on self-destructing via twitter. Over 40 executives have left this year and the latest CFO quit after a month on the job. For Tesla to become a solid company, that has to stop. The optimal case would be Musk gets some sleep, talks to a therapist, and takes his ego down a notch. Then he could go back to spreading a vision instead of trying to harm people with flagrant lies. Unfortunately, the window of opportunity for this may have already closed.
- andreygrehov 8y agoI disagree, because Elon is not a typical CEO, he is a brand.