4 ms·

The board should say 'no' and counter with stock options. Overall,Tesla would be much better off using that 12% stake to lure and retain engineering talent. Mu

The board should say 'no' and counter with stock options. Overall,Tesla would be much better off using that 12% stake to lure and retain engineering talent. Musk starting work on AI at Tesla (which is already the case) and then intentionally forming a competitor elsewhere would be a huge conflict of interest and violation of his responsibility to Tesla. The one possibility where this may not apply is if he built out the AI group at SpaceX. But he'd still be in a situation where he is not acting in Tesla's best interest and , in fact, competing against Tesla. Tesla's board could get rid of him, and sue, and win (and possibly claw back a lot of Musk's existing stake in the suit). That would be risky but also possibly a good course of action. At a minimum, it is a realistic threat that the board can use in deliberations. The reality is that Musk probably has pretty good control of the board and will get something good out this... probably not 12%, but definitely not nothing.

JumpCrisscross 3y ago
> board should say 'no' and counter with stock options Tesla's Board has eight members. One is Musk. Another is his brother. One is the CEO of Redwood Materials. Two are VCs. It would take activist pressure to dethrone Musk. Tesla's sky-high valuation protects against that.
- nocoiner 3y ago
  At what point do the board members start to become concerned with the prospect of Caremark personal liability?
  - consumer451 3y ago
    > At what point do the board members start to become concerned with the prospect of Caremark personal liability? Thank you for introducing me to this case [0], but when was the last related action after this? My third-rate searching did not come up with anything. [0] https://en.wikipedia.org/wiki/In_re_Caremark_International_Inc._Derivative_Litigation https://en.wikipedia.org/wiki/In_re_Caremark_International_I...
    - nocoiner 3y ago
      There was a big case a few years back where the directors of an ice cream company were found to be liable for not paying sufficiently close attention to food safety issues (Marchand v Barnhill). Since then, this type of claim - historically a tough one for plaintiffs to prevail on - has become increasingly popular. One was brought against the Solarwinds directors for the hack (the directors won) and another was brought against the Boeing board for the (first round of the) 737 Max debacle. I don’t know how that case turned out - I know the plaintiffs won an early procedural victory, and I assume Boeing settled, but in a quick search, I can’t find anything definitive on the current status of that case.

JumpCrisscross 3y ago

> board should say 'no' and counter with stock options Tesla's Board has eight members. One is Musk. Another is his brother. One is the CEO of Redwood Materials. Two are VCs. It would take activist pressure to dethrone Musk. Tesla's sky-high valuation protects against that.

nocoiner 3y ago
At what point do the board members start to become concerned with the prospect of Caremark personal liability?
- consumer451 3y ago
  > At what point do the board members start to become concerned with the prospect of Caremark personal liability? Thank you for introducing me to this case [0], but when was the last related action after this? My third-rate searching did not come up with anything. [0] https://en.wikipedia.org/wiki/In_re_Caremark_International_Inc._Derivative_Litigation https://en.wikipedia.org/wiki/In_re_Caremark_International_I...
  - nocoiner 3y ago
    There was a big case a few years back where the directors of an ice cream company were found to be liable for not paying sufficiently close attention to food safety issues (Marchand v Barnhill). Since then, this type of claim - historically a tough one for plaintiffs to prevail on - has become increasingly popular. One was brought against the Solarwinds directors for the hack (the directors won) and another was brought against the Boeing board for the (first round of the) 737 Max debacle. I don’t know how that case turned out - I know the plaintiffs won an early procedural victory, and I assume Boeing settled, but in a quick search, I can’t find anything definitive on the current status of that case.