this post was submitted on 10 Jun 2024
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So how does this man being an executive officer not immediately send a company's stocks into the shitter at this point?
The CEO is chosen by the board, which is chosen by the shareholders. The shareholders have the ultimate power, if they can unite on a goal/decision. Overwhelmingly, the only thing they can agree on is that they want to make the most money. They often can't even agree on how to go about that.
So, the board won't fire him because the shareholders won't force it. The shareholders won't force it because they want the most money, and musk as CEO seems to be the best path, or at least not a problematic one.
As for how that can be, it gets into how absurd Tesla stock is in the first place. There was a period where Tesla's market cap (total value of all shares) was higher than the entire rest of the auto industry combined. This was despite having no feasible path towards that level of production, and even growth in general wasn't looking too hot.
"Tesla shareholders are money-hungry idiots" is what I got out of that. They are like Lenny...when shit goes south, they just keep holding on tight, no matter how much worse they make things, until next thing you know Curlys's wife is dead.
(No offense meant to those with brain damage...the poor decisions they make are understandable and not their fault, of course. And I know that phenomenon isn't unique to Tesla shareholders.)
I don't know if this explains the entire price but we have all seen his securities fraud on Twitter.
There's money to be made when you know a company is going to tank. In fact there are people who specialize in bankrupting companies. When rich people commit fraud they don't get in trouble
Sunk cost fallacy.