Final Up to date on: eleventh July 2025, 12:02 am
By all accounts, I used to be categorized as a Tesla superfan for a couple of decade. I defended Tesla, and the face of Tesla himself, Elon Musk, numerous instances. The corporate and its CEO had been typically misunderstood from what I noticed. I stand by these defenses — most of them. And Tesla did additionally obtain wonderful issues in that decade. Nonetheless, there have been additionally clear seeds of issues, and notable issues beneath the floor, that I absolutely didn’t pay sufficient consideration to till this decade, and particularly latest years. Up to now few years, although, big issues have shaped and little issues have grown.
In latest months, a few reader feedback actually jumped out at me about core, notable issues on the firm. I didn’t actually know what to do with them for some time, however studying the information as we speak about Tesla’s concerningly delayed annual shareholder assembly, these two feedback got here to thoughts once more and it appeared prefer it was time to focus on and talk about them.
The primary remark is an easy one, however one thing I hadn’t heard earlier than. “I’ve heard from just a few ex-employees (so take it for what it’s value) that Elon is a ‘Pigeon CEO’. Flys in randomly for a couple of minutes, craps throughout all the things, then flys away for one more month,” one reader wrote. That actually appears like what I’d anticipate, given how a lot time Musk spends tweeting, at political occasions, and at huge occasions and events (the Tremendous Bowl, the World Cup, Trend Week, and lots of different occasions). Now, that is one thing that will need to have modified over time, although. It appears he used to spend virtually all of his time working at Tesla and SpaceX, largely Tesla. Nonetheless, lately, he’s been closely distracted by different issues and it has appeared unbelievable that he’s working full time at Tesla. So, it’s not that shocking to listen to that he’s been categorised by workers as a “pigeon CEO.”
Oh yeah, and let’s not neglect that he has a minimum of 12 youngsters.
Anyway, with Tesla gross sales floundering for the previous couple of years, minimal new product launches and automobile upgrades, and the competitors more and more consuming Tesla’s lunch in China and Europe, it’s exhausting to not assume that Musk’s intermittent and erratic work at Tesla isn’t ample for the function of CEO.
That stated … downside #2 is the individuals who ought to be ensuring the CEO is up for the job. That will be the board of administrators.
The second reader remark, from “Marc GP,” said: “It’s not simply that Musk has a lot voting energy (22% stake) at Tesla, however that the board may be very effectively paid and acquired for. They earn 100x what board members on related corporations earn at their place (a whole bunch of hundreds of thousands, a lot {that a} Delaware courtroom simply pressured them to return one billion again for extreme emoluments). Would they ever put that in danger?” Marc linked to this text to again that up. Earlier than I get to that article, although, 100x what board members at related corporations earn?! That’s wild. No surprise they aren’t doing something. They’re getting away with theft — insane theft. As Marc stated, why danger that?
The article referenced the now well-known/notorious Delaware courtroom case relating to Musk’s compensation, which additionally coated the board’s compensation. Right here’s extra: “The lawsuit, led by the Police and Hearth Retirement System of the Metropolis of Detroit on behalf of Tesla shareholders, alleged that Tesla board members awarded themselves extreme compensation. Whereas the common annual compensation for an S&P 500 board member is barely over $300,000, Tesla’s board members had been accused of receiving a whole bunch of hundreds of thousands of {dollars} throughout the interval in query.
Underneath the phrases of the settlement, the board members agreed to:
- Return $277 million in money to Tesla.
- Give up $459 million value of inventory choices.
- Forgo $184 million in inventory choices granted from 2021 to 2023.”
Insane.
And remember that the corporate’s gross sales, income, and income have gone down up to now {couples} of years.
Tesla retains lacking its targets. However what are you able to anticipate from a pigeon CEO and a captive, vastly overcompensated board?
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