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When it became clear the "funding secured" tweets were a lie and that the SEC was seeking an officer & director ban against Elon Musk many people sold their sto

by gizmo 7y ago

When it became clear the "funding secured" tweets were a lie and that the SEC was seeking an officer & director ban against Elon Musk many people sold their stock and lost money. It's not OK for directors of a company to make materially false statements to their shareholders and if they do they can (and deserve to) get sued. It's a bit silly to talk about people being "still angry about this" when between filing the lawsuit and today Tesla has been close to bankruptcy multiple times.

xkjkls 7y ago
Exactly. Can anyone name another CEO who could pull this stunt and wouldn't be immediately fired by his board? This whole ordeal exposed the complete lack of corporate governance in Tesla.
- mehrdada 7y ago
  Can you name any other CEO who could pull the success Tesla had thus far? It comes in a package--you cannot pick and choose. If the board (or SEC) legitimately thought a better person could run the company, the outcome may have been different.
  - xkjkls 7y ago
    I'm not sure I would call Tesla a success. The company has racked up GAAP losses of close to $7 billion since going public, and has never made an annual profit. Whatever Elon Musk has created, it doesn't look anything like a sustainable business.
    - frank2 7y ago
      The stock market disagrees with you: The market cap of Tesla is 137.2B in contrast to GM's 29.8B, Ford's 19.6B and Daimler's 32.3B. Source: https://markets.on.nytimes.com/research/markets/usmarkets/industry.asp?industry=53111 https://markets.on.nytimes.com/research/markets/usmarkets/in...
      - xkjkls 7y ago
        The market can remain irrational for a long period of time. WeWork was worth 40 billion two years ago. Now it's worth a negative number.
        frank2 7y ago
        When you picked WeWork out from the pool of many thousands of companies valued at 40 billion usd or more two years ago, you had the benefit of hindsight, which we don't have on the question of whether Tesla is currently overvalued by the stock market.

by gizmo 7y ago

xkjkls 7y ago

Exactly. Can anyone name another CEO who could pull this stunt and wouldn't be immediately fired by his board? This whole ordeal exposed the complete lack of corporate governance in Tesla.

mehrdada 7y ago
Can you name any other CEO who could pull the success Tesla had thus far? It comes in a package--you cannot pick and choose. If the board (or SEC) legitimately thought a better person could run the company, the outcome may have been different.
- xkjkls 7y ago
  I'm not sure I would call Tesla a success. The company has racked up GAAP losses of close to $7 billion since going public, and has never made an annual profit. Whatever Elon Musk has created, it doesn't look anything like a sustainable business.
  - frank2 7y ago
    The stock market disagrees with you: The market cap of Tesla is 137.2B in contrast to GM's 29.8B, Ford's 19.6B and Daimler's 32.3B. Source: https://markets.on.nytimes.com/research/markets/usmarkets/industry.asp?industry=53111 https://markets.on.nytimes.com/research/markets/usmarkets/in...
    - xkjkls 7y ago
      The market can remain irrational for a long period of time. WeWork was worth 40 billion two years ago. Now it's worth a negative number.
      - frank2 7y ago
        When you picked WeWork out from the pool of many thousands of companies valued at 40 billion usd or more two years ago, you had the benefit of hindsight, which we don't have on the question of whether Tesla is currently overvalued by the stock market.