The company, which derives 95% of its revenue from automotive activities, has seen a 25% decrease in its value over the last six months and its profit margin has shrunk to the industry average. There are also concerns about Musk's diversion of Tesla resources to his social media network and SpaceX. Musk and other board members are facing lawsuits over their compensation packages, with allegations of excessive pay and breach of fiduciary duty.
Key takeaways:
- Elon Musk has stated that unless he is awarded another 12 percent of Tesla, increasing his ownership to 25 percent, he would be uncomfortable growing Tesla to be a leader in AI and robotics.
- Musk has suggested a dual-class voting structure similar to Facebook, which would give him more control, but this would be illegal post-IPO.
- Despite Musk's claims of no rift with the Tesla board, a report from The Wall Street Journal alleges that the CEO has a worrying drug problem and the company has lost a quarter of its value over the last six months.
- Musk's previous $56 billion compensation package from Tesla is the subject of an ongoing lawsuit in Delaware, brought by a shareholder who believes it to be excessive and a breach of fiduciary duty by Musk and his board.