Elon Musk’s Twitter Role Puts Tesla Board Under New Scrutiny

Elon Musk took over Twitter last month, his leadership of the social network has been fueled by a flurry of intrigue and no shortage of questions. Here’s how he’ll fare as chief executive of electric-car maker Tesla. As in how much time are you putting into your job. Tesla President Robin Denholm testified in court last week that although she did not know the answer, she was not upset.

As Mr. Musk becomes addicted to Twitter, Tesla is facing multiple threats to its business and its share price is plunging. Some corporate governance experts say Tesla’s board needs to ensure that The company should have a leader who is not distracted.

William Klepper, a management professor at Columbia Business School, said they are violating their fiduciary responsibility if they don’t address that issue. Tesla’s board has long been criticized by shareholder groups for lacking independence from Mr. Musk. Arguing that Tesla’s share price was rising and the company revealed the electric-car market mostly for itself found little resonance.

Tesla faces a lot of competition, especially in China, a huge market for the company and it still grapples with supply chain problems and safety issues with its driver-assistance systems. Its stock has fallen nearly 60 percent from its peak a year ago; Since Mr Musk bought Twitter last month, the S&P 500 stock index has risen 4.5 per cent, but Tesla shares are down 25 per cent. Mr Musk has sold about $30 billion worth of Tesla stock this year and last year to help finance his Twitter acquisition.

I expect that a good board will make every effort to ensure that a C.E.O. If their company was focused enough, Briana Castro, senior director of US research at Glass Lewis, a shareholder advisory firm, and Tesla’s good board, would be concerned with situations such as why its stock is down when the market is up. what can they do. Address any issues.

Some corporate governance experts are concerned that Mr. Musk’s personal relationship with his brother Kimbal could cloud the views of board members and other directors such as James Murdoch, a media executive and longtime friend of Mr. Musk, son of Rupert Murdoch. Some members of the Tesla board have financial ties to Mr Musk’s other businesses such as the SpaceX rocket company.

Another factor is the compensation Tesla’s directors receive, almost entirely in stock, which is several times higher than directors of other large companies, helping some of them make fortunes over the years.

39 thoughts on “Elon Musk’s Twitter Role Puts Tesla Board Under New Scrutiny”

Leave a Comment