Elon Musk is still the wild Tesla card
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Rola Khaleda, FT editor, chooses her favorite stories in this weekly newsletter.
here we go again. This should be the first thought in the minds of many Tesla shareholders this week, as Elon Musk returned to the political battle, announcing his intention to launch a third party to compete with Republicans and Democrats.
It has exceeded less than two months since it led the Musk’s Moocing to the Donald Trump administration, a group of Tesla’s shareholders to Call In order for the CEO to devote at least 40 hours a week in his daily function, and the latest distraction of 7 percent of the share price was eliminated on Monday. Musk was not affected. he He said One of the analysts who suggested to the council linked his salaries to the time he spent working on “silence”.
But at a time Timing He faces the sales and installation competition, and the anxiety is transmitted, and activists again urge the company’s board of directors at the expense of its CEO. Financial pressure raised a question about the investments of the heavy car maker: although the extreme reduction in the capital in the last quarter, the free cash flow still up to about half a quarterly average annual over the past three years.
However, it appears that Tesla shareholders have no reason to feel blue. It is true that a lot of euphoria pumped stocks after Trump’s re -election has been leaked. But they are still increasing by 15 percent since the elections, outperforming the broader market easily. The maximum of the Tesla market is still dwarfing the rest of the auto industry, although it only represents about 2 percent of global auto sales.
The effect of musk continues to support the market cover in Tesla. The shareholders who pumped their share price are installed on the future of the technology that he invoked, and not the electric cars that are the company and butter bread today.
For example, Moorgan Stanley has estimated Tesla commercial accounts of less than a fifth of the company’s potential value. Most of the rest depends on its cars that achieve complete independence: then, it can start running fees from a network management of robots, while the programs and services that the company’s customers will use as soon as they do not need to maintain their interest on the road.
Full autonomy was a long time. Nine years have passed since the MUSK mode for the first time his robotics plans. But he knows how to maintain future vision alive – and make it only one he can present. This week, for example, he promised that GROK, the Great Language Model of his companies, Xai, will soon be included in Tesla compounds – the taste of coming things, when artificial intelligence converts experience in robot cars.
Can anyone to persuade investors to suspend their suspicions for a long time? The huge musk bonus in Tesla shares is an extreme version of the Silicon Valley founder syndrome, and the belief that the company’s founder only has vision and power, to really follow new leading ideas (Musk was not present in the actual founding of Tesla, although he was an early investor and became a member of the painting after a short period).
It was rubbing more salt in the wounds of shareholder activists this week Revelation Tesla failed to meet a legal condition for holding the annual shareholders meeting on time. The event will now be held in November, nearly four months later.
For experts in the board hall such as Neil Mino, who have long complained about Musk’s approach to the ruling and the response of Tesla Board of Directors, this was an open contempt for the transparency of ordinary companies: “This is what really supports himself in an angle. The requirements are very clear.”
Musk told Tesla shareholders before the news of his plans to a third party was launched that he would give the company more. But there are other things that Tesla managers can do to alleviate the investor’s concerns. One can work with him to rebuild Tesla’s executive ranks, which was exhausted by another treacherous last week, in addition to developing a long -term caliphate plan.
Another is to resolve the chaos resulting from the Dillauir Court’s rejection of the stock compensation plan worth $ 56 billion. Musk has to caution He may lose his interest in Tesla if he does not get a greater royal share.
Who knows, maybe Tesla may organize annual meetings on time in the future. The only thing that they will never do is prevent the CEO of Brimnsingshingsholds the next time that it is transported with an idea that has nothing to do with electric cars.
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