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This is a huge red flag, in my opinion. A CFO is legally responsible for compliance to exchange regulations, SEC, etc. Reporting is based on judgement, regardin

This is a huge red flag, in my opinion. A CFO is legally responsible for compliance to exchange regulations, SEC, etc. Reporting is based on judgement, regarding the interpretation of very complex rules. I would have liked to see someone with external experience that has a frame of reference as to how other companies do things, in a high-pressure, regulated environment; a la Ruth Porat. Musk is a big personality, with a my way or the highway attitude. Ultimately, I'd feel more comfortable with someone who could unequivocally walk away, and in doing so, would send a huge signal that something doesn't smell right. In my experience, someone who grew up drinking the coolaide won't have the experience / ability to pull the company back from disaster. Think about all the folks at Uber. It's sad, but you need experienced and ethical leadership, that has an obligation beyond just to the CEO, in Legal / Compliance and Accounting. Especially given the wild ride at Tesla, this is more important now than ever.

Pharmakon 8y ago
I’m starting to get worried myself. Seeing finance people who would have to take responsibility for things like signing the financials over to audit leaving is not unlike seeing rats dive off the deck of a ship. Maybe they’re just tired of the ride, but maybe they’re aware of something the crew isn’t. Either way, ignoring that sign and making excuses because of love or Tesla is a bad move. A lot of major financial implosions in the past gave off plenty of warning signs that many people ignored. Until it all finally comes out, the naysayers expressing concern about HugePopularEndeavor X are usually shouted down as pessimists or saboteurs. Then things fall apart and suddenly everyone wants to know how it wasn’t seen coming. A stream of people unwilling to sign on the dotted line for the audit is worrying. Replacing them with a totally inexperienced person for a $50b market cap company smells like burning sails and timbers to me.
- fatlasp 8y ago
  In grad school I had a corporate finance professor that said when you see the CFO leaving it's almost always a bad sign. Finance guys don't leave when everything looks like it's going to be smooth sailing for years to come
  - deleted 8y ago
    [deleted]
  - rm_-rf_slash 8y ago
    I generally agree with that assessment, but to be fair, any qualified CFO would likely have lower-risk, comparable-reward option elsewhere. I believe in Tesla and hope to the heavens that they succeed in what they are doing, but if I were a star CFO being headhunted for this job, I would probably see myself looking at the prospect of working brutal hours with an uncertain payout, and a possible reputational vulnerability should things go south. Only true believers need apply.
  - rchaud 8y ago
    Yeah well, this CFO left, then came back, then left again. Totally different situation! Stop trying to help the short sellers! /s
travisoneill1 8y ago
It is a red flag, but it has been going on so long at Tesla that I don't think it is hiding any kind of fraud. That would come out quick. Tesla is under too much scrutiny and its finances are too simple to hide much. I would guess that it is just high turnover because nobody wants the job. Most public company CFO's don't have to deal with what they would at Tesla.

Pharmakon 8y ago

I’m starting to get worried myself. Seeing finance people who would have to take responsibility for things like signing the financials over to audit leaving is not unlike seeing rats dive off the deck of a ship. Maybe they’re just tired of the ride, but maybe they’re aware of something the crew isn’t. Either way, ignoring that sign and making excuses because of love or Tesla is a bad move. A lot of major financial implosions in the past gave off plenty of warning signs that many people ignored. Until it all finally comes out, the naysayers expressing concern about HugePopularEndeavor X are usually shouted down as pessimists or saboteurs. Then things fall apart and suddenly everyone wants to know how it wasn’t seen coming. A stream of people unwilling to sign on the dotted line for the audit is worrying. Replacing them with a totally inexperienced person for a $50b market cap company smells like burning sails and timbers to me.

fatlasp 8y ago
In grad school I had a corporate finance professor that said when you see the CFO leaving it's almost always a bad sign. Finance guys don't leave when everything looks like it's going to be smooth sailing for years to come
- deleted 8y ago
  [deleted]
- rm_-rf_slash 8y ago
  I generally agree with that assessment, but to be fair, any qualified CFO would likely have lower-risk, comparable-reward option elsewhere. I believe in Tesla and hope to the heavens that they succeed in what they are doing, but if I were a star CFO being headhunted for this job, I would probably see myself looking at the prospect of working brutal hours with an uncertain payout, and a possible reputational vulnerability should things go south. Only true believers need apply.
- rchaud 8y ago
  Yeah well, this CFO left, then came back, then left again. Totally different situation! Stop trying to help the short sellers! /s

travisoneill1 8y ago

It is a red flag, but it has been going on so long at Tesla that I don't think it is hiding any kind of fraud. That would come out quick. Tesla is under too much scrutiny and its finances are too simple to hide much. I would guess that it is just high turnover because nobody wants the job. Most public company CFO's don't have to deal with what they would at Tesla.