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> The decision says that Musk was close friends with many members of the board so he effectively controlled it. That's the case for many, if not most public co

> The decision says that Musk was close friends with many members of the board so he effectively controlled it. That's the case for many, if not most public companies. In Eastern Europe we were calling this tunneling of a company - create a tunnel with help from inside to get riches out and leave the shell to its own demise.

clipsy 3y ago
> In Eastern Europe we were calling this tunneling of a company - create a tunnel with help from inside to get riches out and leave the shell to its own demise. Elon prefers to call it “boring.”
Taek 3y ago
Increasing the share price by 10x and turning the Model 3 into the worlds best selling vehicle is hardly "leaving the shell to its own demise" *edit: Model Y
- NERD_ALERT 3y ago
  The Model 3 is not even close to the “best selling vehicle of all time” by any metric.
  - Taek 3y ago
    https://thedriven.io/2023/05/26/tesla-model-y-overtakes-corolla-to-be-worlds-best-selling-car-in-2023/ https://thedriven.io/2023/05/26/tesla-model-y-overtakes-coro... I guess it was the Model Y!
    - josefx 3y ago
      Best selling car over a cherry picked time span is quite far from "best selling car of all time".
- TheAlchemist 3y ago
  I think we should wait 1-3 years to judge. If Tesla doesn't live up to the hype it created - and I believe there is virtually 0% chance it does - and the stock inevitably crashes - say 90% from here, will your judgement be the same ?
  - kortilla 3y ago
    Yes, he delivered a 10x return to those shareholders that approved. If they choose to stay invested now and lose money, that’s all on them. They know everything you do, including your expert “0%” analysis.
    - TheAlchemist 3y ago
      Well, increasing the share price 10x is not a good benchmark - it should be (and we all know it's not in this case) independent of the CEO - it should be dependent on the economic performance of the company. A CEO with such a huge package as discussed here, may be more inclined to, let's just say be 'overly optimistic'. One such overly optimistic CEO in the same industry recently went to jail. But anyway, the trail is not really about that - it's about proper governance. If you're a public company you get to benefit from a lot of things, but you do have some obligations. And those were pretty clearly broken - keep in mind that this complaint was filled in 2018 - just after the package was awarded. Just to be clear - I do think that what Elon Musk did, lifting Tesla from a startup to a top10 carmaker, is absolutely remarkable But this judgment has nothing to do with it.
rchaud 3y ago
In the west they call it a "leveraged buyout".
ENGNR 3y ago
He must not be very good at it because he left most of the value behind There are now happy Tesla owners everywhere, and it’s perfectly placed to benefit from the AI wave he knew was coming, enough to found OpenAI

clipsy 3y ago

> In Eastern Europe we were calling this tunneling of a company - create a tunnel with help from inside to get riches out and leave the shell to its own demise. Elon prefers to call it “boring.”

Taek 3y ago

Increasing the share price by 10x and turning the Model 3 into the worlds best selling vehicle is hardly "leaving the shell to its own demise" *edit: Model Y

NERD_ALERT 3y ago
The Model 3 is not even close to the “best selling vehicle of all time” by any metric.
- Taek 3y ago
  https://thedriven.io/2023/05/26/tesla-model-y-overtakes-corolla-to-be-worlds-best-selling-car-in-2023/ https://thedriven.io/2023/05/26/tesla-model-y-overtakes-coro... I guess it was the Model Y!
  - josefx 3y ago
    Best selling car over a cherry picked time span is quite far from "best selling car of all time".
TheAlchemist 3y ago
I think we should wait 1-3 years to judge. If Tesla doesn't live up to the hype it created - and I believe there is virtually 0% chance it does - and the stock inevitably crashes - say 90% from here, will your judgement be the same ?
- kortilla 3y ago
  Yes, he delivered a 10x return to those shareholders that approved. If they choose to stay invested now and lose money, that’s all on them. They know everything you do, including your expert “0%” analysis.
  - TheAlchemist 3y ago
    Well, increasing the share price 10x is not a good benchmark - it should be (and we all know it's not in this case) independent of the CEO - it should be dependent on the economic performance of the company. A CEO with such a huge package as discussed here, may be more inclined to, let's just say be 'overly optimistic'. One such overly optimistic CEO in the same industry recently went to jail. But anyway, the trail is not really about that - it's about proper governance. If you're a public company you get to benefit from a lot of things, but you do have some obligations. And those were pretty clearly broken - keep in mind that this complaint was filled in 2018 - just after the package was awarded. Just to be clear - I do think that what Elon Musk did, lifting Tesla from a startup to a top10 carmaker, is absolutely remarkable But this judgment has nothing to do with it.

rchaud 3y ago

In the west they call it a "leveraged buyout".

ENGNR 3y ago

He must not be very good at it because he left most of the value behind There are now happy Tesla owners everywhere, and it’s perfectly placed to benefit from the AI wave he knew was coming, enough to found OpenAI