this post was submitted on 10 Jun 2024
688 points (100.0% liked)
Technology
71448 readers
5690 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related news or articles.
- Be excellent to each other!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, this includes using AI responses and summaries. To ask if your bot can be added please contact a mod.
- Check for duplicates before posting, duplicates may be removed
- Accounts 7 days and younger will have their posts automatically removed.
Approved Bots
founded 2 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
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.