Therese Poletti of Marketwatch on Elon Musk and Tesla Motors:
“(Musk) and our board have overseen the creation of tremendous value for all of Tesla’s stockholders,” Tesla said in an emailed statement. “The Tesla board is committed to a completely fair governance process.”
The facts at hand show a much more precarious position: The company is failing to reach its own expectations while adding to future projections and attempting a risky, potentially unwise acquisition, all while under federal investigation for one of its most prominent technological advances. Yet the company and its CEO act as if they are made of Teflon, and don’t need to have the types of checks and balances that corporations use to avoid disaster.
“There is a sense that there is a lot on their plate, and this is when you need the right kind of corporate governance structure in place,” [Stephen Diamond, an associate law professor at Santa Clara University] said.
Musk deserves all the kudos he gets for a vast list of achievements, including successfully manufacturing an electric vehicle, working to lower the cost of ownership, bucking the franchise system and shaking up the complacent automotive industry. But Tesla may be facing some tough terrain ahead and investors face a tough decision of whether to stomach the bumpy road.
