Elon & s Enablers: Tesla & # 39; s Submissive Board can be as big a risk as a whimsical CEO

Elon & s Enablers: Tesla & # 39; s Submissive Board can be as big a risk as a whimsical CEO

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Elon Musk speaking at SXSW.

Elon Musk speaking at SXSW.2018 Amy E. Price

With Tesla closer to the transition from a niche electric car company to a major manufacturer than ever before, discipline and focus have never been needed. And with his ever-growing need for funds and with billions of dollars in equity on the line, you would think that the turmoil generated by the capricious public comments of CEO Elon Musk would have caused a deafening alarm for his administration.

You would be wrong.

After his half-baked plan to personally let the company collapse last month, six of Tesla's nine directors said: "We fully support Elon while continuing to lead the company," despite the fact that his tweets about privatization led to disputes with shareholders and an investigation by the SEC. (Musk and brother Kimbal, who are board members, have prevented themselves from considering the plan.)

That happened when he talked about working hours of 120 hours, camping at the Tesla factory in Fremont, California, during his attempt to stimulate the output of Model 3 and little to sleep. He said in tweets that he might be bipolar, possibly making slanderous remarks about a British man who had helped the rescue of Thai youths, had an income visit where he talked to a fan instead of asking analysts questions and smoking marijuana during a podcast. Turnover among highly educated executives in engineering and finance is also a concern, but the board has nevertheless kept silent.

"Enron while it collapsed had no sales as high as this company"

Jeffrey Sonnenfeld, Yales School of Management

"The board is completely negligent here," Jeffrey Sonnenfeld of the Yale School of Management told Forbes. "Enron as it collapsed had no sales as high as this business, and if you go back 18 months, it's 50 important people who left … Where is the board in terms of looking at exit interviews and what is being said by those who leave, at this unrivaled level of instability? "

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