Tesla Board refutes WSJ report of CEO replacement search to replace Musk

[HaulingAss]

Imagine being you and thinking Elon is magical and can work more hours than are in a day. Even he has basically admitted he's been neglecting Tesla. It's quite obvious his interests are elsewhere, I encourage him to leave and pursue them. We deserve someone focused exclusively on the company at this point.

Elon doesn't claim to work more hours than there are in a day.

That said, I'm so glad he worked tirelessly to defeat the last administration, the one that that would have stifled innovation in autonomy and punished those who had too much success. That would have been a disaster for Tesla's business plan (and for large shareholders who would have been taxed in a punitive manner for their outsized gains).

Only Elon had the vision (and the balls) to make this happen. I don't know of any other potential CEO who could have accomplished this (or even thought it was worth pursuing). Now Tesla is positioned for unimaginable growth, unimpeded by federal government favoritism and corruption. From a TSLA shareholder perspective, that is priceless!

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[BannedByTMC]

Elon doesn't claim to work more hours than there are in a day.

Once again reading comprehension fails you.

 

[Nice2CTu]

I think there isn't much to add on this debate that hasn't already been said about Musk's value to Tesla as CEO, except perhaps the observation that the case against Musk (which Idon't share)is a complaint that his politics has hurt share price, and a CEO who exhibits authenticity in that way should be replaced. I've yet to hear or read any critic of Musk as CEO ever once make the case against him, except in comments on this thread, that Musk isn't brilliant, visionary, has created value in every one of his companies, works tirelessly, cares for humanity's future (Mars to save humanity with interplanetary presence), has created brain implants allowing MLS patients to communicate, provided starlink internet to remote places worldwide, including in Ukraine, a visionary robotic futuristic Optimus destined to benefit the world and the planet, solar (and grid) enhancements/improvements, and bringing home stranded astronauts...and many other visionary value-added accomplishments. If a shareholder has lost faith, sell and get out, take your profits, be happy, put it in other investments. Those like me who believe in both Musk's historical track record, his articulated vision of future direction, and his authenticity and humanistic goals are opposed to replacement...with one exception--if he meets unexpected health, death, etc., then I support the Board's fiduciary responsibility to make plans for that dismal future.

Claiming Musk doesn't add value and vision based on expressing his authentic views about public policies is misguided, IMO. If you became an investor in the past, there was belief in his value add then. The case that Musk should be replaced now because a) his public service has angered some and stock price has declined, and b) item a) means he no longer has vision or value as CEO, seems nonsensical.

 

[BannedByTMC]

Claiming Musk doesn't add value and vision based on expressing his authentic views about public policies is misguided, IMO.

Which is not the argument that I've been making. My argument has distinct components not only focused on your above quote.

1. Yes Musk has damaged the brand by his words and actions outside of Tesla, (especially with those most inclined to buy the product). A smart CEO would understand the value in customer retention as well as customer acquisition. This has been a colossal blunder never before seen on this level in business, at least not that I can think of.

2. Musk has neglected the company and clearly has other interests in other areas. He should go pursue them.

3. Tesla innovation has been lacking in recent years and many products are no longer leading the industry.

4. We deserve a dedicated CEO willing to push the company to the forefront of the industry once again. A new CEO would also wash off some of the stink Musk has smeared on the brand.

 

[Nice2CTu]

Take a look at the returns below, Telsa vs. S&P500, Ford, and GM. My interpretation is that TSLA had a runup owing to election results and perceived positive benefits in November, and has settled as of Friday to a mere 475% or so "value add" since its inception, with an ascendant trend in the past week or so. I think Musk agrees with you and has stated he is re-dedicating more time to TSLA very soon.

Stock performance is debatable as to specific causes, day traders are not particularly strategic, they react to analyst coverage/opinions, other traders that day, market movements (e.g., interest rates), politics, and what their investors think. But I think the chart shows in TSLA undisputable outperformance of GM/Ford and S&P500 index by a multiple of at least 4x value creation, and it's currently trading at a high level relative to history, with a couple of spikes.

Stink is also debatable as to both specific causes and the intensity/timing. If you bought stock at the peak in December, you would not be a considered long-term investor and might use that term. But for long-term holders who think there is strategic value of 450+% relative to industry and similar players in the automotive market. If you know of an EV/Automotive CEO that has demonstrated better performance, name recognition, intelligence, creativity, and vision that would propel a better future, then you might name them for clarification.

I believe if Musk were replaced, for any reason, the stock will plummet, recover maybe if there is deomonstration over a long term. That's a big risk to assume. Shareholders last year, for the 2nd time in TSLA history, voted Musk a $45 billion package (Delaware crashed that party).

Top chart (blue) is 3 years, bottom chart is 5 years.

 

[BannedByTMC]

Take a look at the returns below, Telsa vs. S&P500, Ford, and GM.

Why? I didn't mention the stock price, and returns from before Musk went off script aren't relevant to the current discussion. Since Elon started buying shares of Twitter in Jan 22 the stock has really under performed other than the short lived post election bump. We'll never know where the stock would currently be or how the company would have been performing if he had stayed focused on it and was able to keep innovating.

 

[Trimotor]

 

[BannedByTMC]

 

[YDR37]

Yesterday I had to take my CT to the closest Tesla dealership, which is three hours away from my house ... A guy was proposing a dealership in Redding, CA to the manager ... I think Tesla sales in rural America are going to skyrocket.

I think it's true that rural Americans are taking another look at Tesla. But your own post shows the problem -- Tesla, in its current form, is set up to serve blue America -- not red America. Who wants to drive three hours (one way) for truck service? How many Ford dealers did you pass along the way?

As you probably know, there isn't much in the way of Tesla sales or service in California north of the Sacramento area. Just one location, in Chico (and Tesla probably picked Chico because it's a liberal college town).

You could leave Chico, turn north on I-5, and you won't find another Tesla store for 450 miles til you hit Salem, Oregon. For comparison, there are seven Tesla stores just on the 50-mile stretch from San Francisco to San Jose.

Now, it's true that Tesla sales have been falling on the West Coast, so maybe the existing store network needs to change. Maybe it would make sense to close some of the many Bay Area Tesla stores, and open new ones in places like Redding or Medford.

I'm just saying that Tesla would have a lot of work to do. Tesla currently has more stores in Palo Alto (two) than in Montana, Wyoming, North Dakota, South Dakota, Nebraska, and Kansas combined (zero).

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