Some stakeholders invested in Tesla are urgently seeking intervention from the corporation’s board of directors, aiming to restrain Elon Musk. This arises from mounting apprehensions about the adverse effects of his influence on Tesla’s brand.Thank you for reading this post, don't forget to subscribe!
The steadfastness of Musk, his supporters, and Tesla investors has been tested over the last two years.
There has been a vivid concern that their conduct since the acquisition of Twitter may have detrimental repercussions on Tesla’s brand.
Several instances, such as the recent attempt to intimidate Mark Zuckerberg at his residence, have prompted calls from Tesla investors for the board to take action and rein in their CEO.
The board of directors, the sole authority over a company’s CEO, has never taken any action until now.
Following Musk’s alignment with anti-Semitic statements on X, more Tesla investors are advocating for his suspension or dismissal from the board.
Jerry Brackman, the Chairman of First American Trust, demanded that the board suspends Musk for 30 to 60 days to “convey a message.” He expressed, (via CNN)
“I uphold the freedom of speech, but there is no justification for the CEO of a public company to spread hate.”
He is not alone in urging Tesla’s board to take action. Other influential Tesla investors have echoed similar sentiments, with some advocating for Musk’s removal from the board.
However, the probability of this unfolding is exceedingly low. Not only has the Tesla board refrained from acting on Musk’s more extreme behaviors, but they have also abstained from commenting on them.
The Board is technically autonomous and purportedly acts in the shareholders’ best interests. This could lead to the ousting of Musk, who owns less than 20% of Tesla, but the CEO harbors a close relationship with several board members and wields substantial influence over them.
Musk’s brother, Kimbal, also serves on Tesla’s board.
Electrek’s Tech Perspective
This situation is highly disconcerting. I will be candid. Supporters of Elon will accuse me of being a detractor, and his detractors will label me an apologist, regardless of my stance. So here it is:
The media has been quick to label Elon as anti-Semitic due to his recent tweet, and this time, it is difficult to dispute that claim.
It is evident that he unequivocally endorsed a tweet that was rooted in anti-Semitism.
For those who are unfamiliar with the context, it revolves around a simple scenario:
In essence, a Jewish individual challenges anti-Semites to express their anti-Semitic rhetoric “face to face,” and a user on X alleges to have confronted him. Apparently, being anonymous and online is now synonymous with being “in your face”?
Elon chose to align himself with that individual.
Do I believe that Elon is an anti-Semite? No, I do not believe that is the case. I am not excusing his behavior, but I attribute it to his fixation with X and his poor platform communication.
Elon is embroiled in a conflict with the Anti-Defamation League and similar entities that criticize X for insufficient actions against racism and anti-Semitism on the platform.
I am of the opinion that Elon does not intend to advocate for anti-Semitism or racism on X, but I also perceive that X presently lacks the adequate resources to effectively manage those issues. Elon interprets attacks on X by the ADL and others as a personal assault on the left or a “woke virus.”
When he observes individuals combating against such attacks, he supports them, even if their motives for doing so differ. The specifics regarding X are ambiguous.
Ultimately, he has lent his support to anti-Semitism, which is undeniably hurtful to myriad people.
My primary concern is his failure to acknowledge this and offer an apology. The longer this goes unaddressed, the more challenging it will be to refute the assertion that he himself holds anti-Semitic views.
Investors in Tesla should be apprehensive about this. His loss of grasp on reality and critical thinking, and the distortion of reality around him due to his cult of personality, are evident.
However, in my estimation, urging action from Tesla’s board would be futile. I have completely lost faith in him.
Until he publicly clarifies his stance on this matter, I believe investors should refrain from endorsing him in the next election.
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