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> The mission of Tesla is to maximize value to its shareholders That is one philosophy: * https://en.wikipedia.org/wiki/Friedman_doctrine https://en.wikipedia

> The mission of Tesla is to maximize value to its shareholders That is one philosophy: * https://en.wikipedia.org/wiki/Friedman_doctrine https://en.wikipedia.org/wiki/Friedman_doctrine * https://en.wikipedia.org/wiki/Shareholder_primacy https://en.wikipedia.org/wiki/Shareholder_primacy It is not the only one: * https://en.wikipedia.org/wiki/Stakeholder_theory https://en.wikipedia.org/wiki/Stakeholder_theory * https://corpgov.law.harvard.edu/2012/06/26/the-shareholder-value-myth/ https://corpgov.law.harvard.edu/2012/06/26/the-shareholder-v...

throwadobe 2y ago
The shareholders literally own the company, so they are the ones who get to decide what gets maximized. Most shareholders decide they want returns to themselves to be maximized. Not all will in every single company at every point in time, but it's likely the case 99.9% of the time.
- throw0101d 2y ago
  > The shareholders literally own the company […] They do not actually. * https://archive.ph/VCUp4 https://archive.ph/VCUp4 / https://www.ft.com/content/7bd1b20a-879b-11e5-90de-f44762bf9896 https://www.ft.com/content/7bd1b20a-879b-11e5-90de-f44762bf9... * https://www.pqmagazine.com/the-myth-of-shareholder-ownership/ https://www.pqmagazine.com/the-myth-of-shareholder-ownership... * https://www.forbes.com/sites/petergeorgescu/2021/07/21/the-shareholders-are-not-the-owners-of-a-corporation/ https://www.forbes.com/sites/petergeorgescu/2021/07/21/the-s... * https://edwardslaw.ca/blog/shareholders-agreements-in-canada-corporate-law/ https://edwardslaw.ca/blog/shareholders-agreements-in-canada... * https://www.ippr.org/articles/who-owns-a-company https://www.ippr.org/articles/who-owns-a-company * https://www.cambridge.org/core/journals/journal-of-institutional-economics/article/abs/who-are-the-owners-of-the-firm-shareholders-employees-or-no-one/587374B0969C7F1A3566F70D97732399 https://www.cambridge.org/core/journals/journal-of-instituti... They have certain claims, but so do customers, suppliers, employees, governments (taxes), bond holders, etc. The claims of shareholders come last, which is why owning stock gets you higher returns (than, e.g., bonds from the company): you're at highest risk of losing money from being last on claims, so you should be rewarded for that higher risk.
  - throwadobe 2y ago
    Those are opinion pieces and meant to be contrarian. Shareholders by definition own the equity of the company. You're confounding the equity with the enterprise, while also ignoring the meaning of "control". Having IOUs from the company in the form of future goods or services owed to customers, interest payments owed to debtholders or future taxes owed to the government do not equate to having an actual ownership in the business.
    - deleted 2y ago
      [deleted]

throwadobe 2y ago

The shareholders literally own the company, so they are the ones who get to decide what gets maximized. Most shareholders decide they want returns to themselves to be maximized. Not all will in every single company at every point in time, but it's likely the case 99.9% of the time.

throw0101d 2y ago
> The shareholders literally own the company […] They do not actually. * https://archive.ph/VCUp4 https://archive.ph/VCUp4 / https://www.ft.com/content/7bd1b20a-879b-11e5-90de-f44762bf9896 https://www.ft.com/content/7bd1b20a-879b-11e5-90de-f44762bf9... * https://www.pqmagazine.com/the-myth-of-shareholder-ownership/ https://www.pqmagazine.com/the-myth-of-shareholder-ownership... * https://www.forbes.com/sites/petergeorgescu/2021/07/21/the-shareholders-are-not-the-owners-of-a-corporation/ https://www.forbes.com/sites/petergeorgescu/2021/07/21/the-s... * https://edwardslaw.ca/blog/shareholders-agreements-in-canada-corporate-law/ https://edwardslaw.ca/blog/shareholders-agreements-in-canada... * https://www.ippr.org/articles/who-owns-a-company https://www.ippr.org/articles/who-owns-a-company * https://www.cambridge.org/core/journals/journal-of-institutional-economics/article/abs/who-are-the-owners-of-the-firm-shareholders-employees-or-no-one/587374B0969C7F1A3566F70D97732399 https://www.cambridge.org/core/journals/journal-of-instituti... They have certain claims, but so do customers, suppliers, employees, governments (taxes), bond holders, etc. The claims of shareholders come last, which is why owning stock gets you higher returns (than, e.g., bonds from the company): you're at highest risk of losing money from being last on claims, so you should be rewarded for that higher risk.
- throwadobe 2y ago
  Those are opinion pieces and meant to be contrarian. Shareholders by definition own the equity of the company. You're confounding the equity with the enterprise, while also ignoring the meaning of "control". Having IOUs from the company in the form of future goods or services owed to customers, interest payments owed to debtholders or future taxes owed to the government do not equate to having an actual ownership in the business.
  - deleted 2y ago
    [deleted]