“In real life he would be sacked from Tesla and somebody would actually run the company,” says Ross Gerber, an early investor who has called for Musk to go.
“If he’s going to do politics, then he shouldn’t be the chief executive. There’s a lot of work that needs to be done at Tesla.”
Political distractions
Most investors have said they want Musk to stay in charge of the company, but they want him to commit to the job full time. Despite his frequent controversies, he is recognised as a uniquely talented executive who has repeatedly defied his doubters.
Sales may be in decline, but the company is pressing ahead with the launch of driverless taxi rides in the US, a business that Musk has said is Tesla’s future.
In May, a group of shareholders wrote to Tesla’s board asking that Musk commit to working 40 hours a week at the company.
Last week X’s chief executive Linda Yaccarino resigned after two years in which she had regularly been undermined by Musk’s behaviour.Credit: Bloomberg
“The current crisis at Tesla puts into sharp focus the long-term problems at the company stemming from the CEO’s absence, which is amplified by a board that appears largely uninterested and unwilling to act,” it said.
At the time, Musk acknowledged the concerns, promising to pare back his work at the White House’s department of government efficiency and return “24/7″ to his businesses, which also include rocket company SpaceX and social network X.
But his spat with Trump and promises to end America’s two-party system indicated that he had once again become distracted.
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On Monday, Tesla’s shares fell 8 per cent as Musk’s launch of the America Party reignited questions about his commitment to Tesla.
James Fishback, a Trump-supporting investment manager, has written to Tesla’s board asking it to force Musk to clarify his political ambitions.
“This [running a party] is a full-time job, and the question is whether this full-time job is compatible with his full-time job as Tesla chief executive,” he says.
“When Elon deviates from its core competency and does things that are self-destructive, the share price rightfully responds.”
Individual shareholders, however disgruntled, have little influence over Musk. The company’s board, which would be formally responsible for firing him if it came to it, contains several Musk allies.
Tesla sales are slumping across the globe. Credit: Bloomberg
In May, Robyn Denholm, the company’s chairman, swiftly denied a Wall Street Journal report that the company had started looking for a successor. And the majority of shareholders last year backed a $US56 billion pay package for its chief executive.
Who could replace Musk?
There would also be the tricky task of replacing Musk, who, as the company’s largest shareholder, would continue to be actively involved.
Last week X’s chief executive Linda Yaccarino resigned after two years in which she had regularly been undermined by Musk’s behaviour.
The most likely candidate would be an insider such as JB Straubel, the company’s former technology chief, or Tesla’s chief designer Franz von Holzhausen.
Musk would bristle at any attempt to replace him. He has said he wants to run Tesla for another five years, predicting that it will be the most valuable company in the world.
When Wall Street analyst Dan Ives last week called on the board to rein him in, Musk tweeted back: “Shut up, Dan”.
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But not long ago, merely questioning whether Musk was the right man to run Tesla would have been blasphemy. Today, it seems up for debate.
Telegraph, London
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