Latest news with #Technoking
Bloomberg
04-08-2025
- Automotive
- Bloomberg
Tesla Gives Musk Some Stock
In 2018, Tesla Inc. gave Elon Musk, its chief executive officer and Technoking, a big package of stock options to motivate him to transform Tesla from about a $59 billion company into a trillion-dollar company. This worked. Tesla's equity market capitalization peaked at about $1.5 trillion last year; it's hovering around $1 trillion today. Musk's 'moonshot' package of stock options is worth, at today's prices, about $87 billion. 1 That is both a lot of money and kind of a bargain; it does seem unlikely that a different CEO would have added a trillion dollars of value to Tesla. 2 And then last year a Delaware judge ruled that this options package was invalid, for conflict-of-interest and disclosure reasons. (She found that Tesla's board, which approved the options, was in Musk's pocket, and that the outside shareholders who also approved it were not fully informed about the deal.) Tesla responded by:
Reuters
04-08-2025
- Automotive
- Reuters
Musk's $29 bln handout makes him harder to replace
NEW YORK, Aug 4 (Reuters Breakingviews) - A fight caused by Elon Musk's iron grip on Tesla (TSLA.O), opens new tab is showing just how tight his control is. The electric carmaker's board on Monday handed, opens new tab its boss stock worth $29 billion to show its 'good faith' in an ongoing legal dispute over a pay package worth almost twice that sum. The latest bonanza fixes none of the problems posed by a CEO who is both a burden on the company's present and an essential fulcrum of the future hopes supporting its $980 billion market value. The first problem is that Tesla's 'Technoking' CEO wants 25% voting control of the company. The 2018 award would have lifted his stake over 20%. But that payday has been in legal limbo since Delaware judge Kathleen McCormick last year ordered it be rescinded due to the hopelessly conflicted process by which the board made its decision. The latest 'interim' payment, which will effectively be canceled if Tesla succeeds in getting the original reinstated, merely increases Musk's ownership to around 16%. After more than a year of struggle, the question of his next incentive package remains unresolved. The second issue is that the tech tycoon's value to his company is increasingly double-edged. Musk once attracted a fervent following among technologists and the car-buying public. Yet brand loyalty among Tesla owners has plummeted since he jumped into electoral politics – first backing President Donald Trump and then falling out with him – Reuters reported based on S&P Global Mobility data. Even so, Musk retains a unique aura for Tesla investors. How else to explain a stock trading at 148 times expected earnings over the next 12 months, according to LSEG data, when financial results are slumping? He has pushed a strategy that de-emphasizes the humdrum business of selling actual cars, swapping out a path-breaking, truly cheap vehicle plan for a cut-rate model that cannot profitably hit a sub-$30,000 price. Instead, Musk now talks about Tesla building millions of humanoid robots or self-driving taxis even as it trails Google's (GOOGL.O), opens new tab Waymo and other rivals. Every decision - from cutting the sensors in each car to incorporating language model Grok - leads to more dependence on an artificial intelligence push that depends on raw scale. Here, Musk is among a select group of AI pioneers who can collect enough powerful semiconductors and push past pesky regulations. Musk has even proposed that Tesla invest in his xAI business, potentially tying the carmaker even more tightly to the rest of his empire. As the standard business of selling automobiles is pushed further to the background, the company depends ever more on the peculiar whims of its CEO. His extracurricular activities - from xAI to rocket-maker SpaceX to political activism - seem likely to continue; investors in another of his companies were recently warned, opens new tab that Musk may re-enter the electoral arena. All the new pay package does is cement this reality, while desperately trying to rekindle the old magic. Follow Jonathan Guilford on X, opens new tab and Linkedin, opens new tab.
Gizmodo
10-06-2025
- Business
- Gizmodo
Elon Musk's Moment of Regret
On March 15, 2021, a rather unusual detail emerged in a Tesla filing with the SEC: Elon Musk's official title was listed as 'Technoking of Tesla.' The billionaire later clarified this whimsical change as a humorous jab at corporate formalities. Yet, beyond the jest, it perfectly encapsulated his audacious approach: deeply unconventional, unconcerned with tradition, and utterly dismissive of decorum. His self-assigned mission has always been to farcically upend established norms and forcefully impose his unique vision on the world. This distinctive style manifests as an unapologetic infusion of private-sphere behaviors into the corporate realm. Musk, for instance, has never shied away from engaging in heated arguments on social media, often employing colorful language and pointed insults that would undoubtedly lead to a CEO's swift dismissal or at least a stern warning from their board. He routinely uses X (formerly Twitter), the 'public town square' he acquired in late 2022, to settle scores. 'Gates is a huge liar,' he famously declared on May 8, referring to philanthropist and Microsoft co-founder Bill Gates. Gates's perceived transgression? Daring to criticize the Department of Government Efficiency (DOGE), a brainchild of the Trump administration. Trump had tasked Musk with streamlining the federal government by slashing spending and reducing costs, and DOGE, the agency specifically created for Musk's oversight, quickly alienated nearly every other government member, becoming a lightning rod for public dissatisfaction with the administration. Musk had previously posted an insulting meme targeting Gates, whose 'great sin,' in Musk's eyes, was allegedly shorting Tesla stock years prior, effectively betting on its decline. Throughout these episodes, Tesla's board of directors, largely composed of loyalists and close associates, remained conspicuously silent. Millions of fans on X, however, cheered him on, further solidifying his image as a 'king' adored by his subjects. He largely ignored the few dissenting voices. As his financial power swelled, Musk's sense of invincibility grew. Donald Trump's return to the White House, a victory to which Musk contributed over $290 million according to filings with the Federal Election Commission, ultimately granted him the political influence he had previously lacked. He found himself wielding a rare trifecta of power: immense wealth, political sway, and control over crucial social media platforms (X and xAI). However, on June 5, the tech mogul discovered that even his immense power had its limits. He escalated his criticism of the 'One Big Beautiful Bill Act,' Trump's signature budget bill, which includes cuts to Medicaid and Medicare, increased national debt, and the elimination of subsidies for green cars. This time, he directly and personally attacked Trump, bemoaning the former president's 'ingratitude,' claiming Trump wouldn't have won without his support. He went so far as to express support for Trump's impeachment, controversially linking it to the Epstein Files, a fixation within far-right and MAGA circles. A prevalent conspiracy theory among these groups suggests that Jeffrey Epstein, the sex offender who died by hanging in prison in 2019 while facing charges of sexually abusing underage girls, was allegedly murdered to prevent him from revealing a list of powerful clients, many of whom are believed to be prominent liberals. The fact that Epstein died during Trump's presidency is conveniently disregarded by proponents of this theory. This public showdown between the world's richest man and arguably the most powerful man in the world sent shockwaves through right-wing circles, where the alliance between the two had previously been lauded. Unlike his past skirmishes, Musk did not receive the expected and hoped-for support from his legion of followers. Instead, he faced significant criticism, even from Joe Rogan, a long-time friend who had publicly asserted for months that America owed Musk a great deal. This time, however, Rogan believed Musk had overstepped. 'I understand, he owns Twitter,' Rogan commented on Musk during a June 5 episode of The Joe Rogan Experience, his popular podcast. 'I think it's bad for your mental health. Posting things publicly all day and arguing with people constantly is bad for you.' For many, Rogan's sentiment was simply playing the world's smallest violin for a man whose self-inflicted wounds were becoming increasingly apparent. It is within this unprecedented context that Musk did something entirely uncharacteristic: he issued a mea culpa. In a short, ironic post, he engaged in self-criticism, signaling a surprising moment of personal introspection. 'It's outrageous how much character assassination has been directed at me, especially by me,' he posted on the night of June 8. The post quickly garnered over 44 million views as of the time of writing. Musk's statement seems to suggest that he is the primary architect of the criticism he faces, acknowledging that he is, in essence, his own worst enemy. This reveals a rarely seen, vulnerable side of the billionaire, starkly contrasting with the public image of an untouchable figure who believes he can do no wrong. But is this genuine self-criticism, or a strategic move born out of necessity after burning bridges? Indeed, on June 7, Trump informed NBC that he had no desire to mend his relationship with Musk and threatened the billionaire with 'serious consequences' should he fund Democratic candidates against Republicans who voted for the 'One Big Beautiful Bill' in the upcoming midterms. California Congressman Ro Khanna, who has known Musk for many years, extended an olive branch to the billionaire, calling for his party to embrace him. 'Having Elon speak out against the irrational tariff policy, against the deficit-exploding Trump bill, and the anti-science and anti-immigrant agenda can help check Trump's unconstitutional administration,' Khanna said in an interview with Semafor. 'I look forward to Elon turning his fire against MAGA Republicans instead of Democrats in 2026.' However, it is uncertain whether Democrats will heed Khanna, as Musk has become persona non grata, particularly among the party's left wing. Musk has stated he voted Democratic until Joe Biden's election. Beyond SpaceX, which holds numerous government contracts, Tesla itself is an easy target for Trump, who views the powers of the presidency as inherently personal. Tesla's net profit, in fact, plummeted 71% in the first quarter to $409 million compared to the previous year, primarily due to a sharp decline in vehicle sales. The automaker is also grappling with protests outside its stores globally, with demonstrators denouncing Musk's actions through DOGE in the U.S. and his perceived support for far-right ideologies worldwide. This erosion of goodwill is expected to continue. Initial data for the current second quarter shows a sustained decline in Tesla sales across China and Europe. Sales fell 45% in the UK in May, even as the overall EV market grew by 28%. In Germany, home to Tesla's only European factory, the decline was 36%, contrasting sharply with a 45% jump in the local market. Further demonstrating this trend, Tesla sales are down 67% in France, 54% in Sweden, 20% in Italy, 48% in Denmark, and 29% in Germany. These figures strongly suggest that Musk's reputation has been severely damaged among liberals, who constituted Tesla's core customer base due to their embrace of climate change initiatives and environmental concerns. For them, Tesla once symbolized the quintessential 'green' car. Tesla executives have been working to reassure worried investors since April. Musk himself has indicated a desire to reduce his role within the Trump administration. More significantly, he has promised that in the coming months, self-driving Teslas would be widely available in many cities thanks to advancements in FSD (Full Self-Driving), the software enabling autonomous driving. Unsupervised FSD, he implies, would make people forget this current rough patch and repair his tarnished reputation. 'I'm confident that it will be available in many cities in the US by the end of this year,' he told investors during the quarterly results presentation conference on April 22. However, this ambitious timeline hinges on regulatory approval, particularly from federal agencies. Given the increasingly fractured relationship with Trump, this green light is no longer as guaranteed as it might have seemed just a fortnight ago. The path forward appears considerably less smooth. Whether this mea culpa arrives too late remains uncertain. And Trump is never one to apologize. What is clear, however, is the division among X users. 'To err is human, to forgive is divine,' one user commented on Musk's post. 'The courage to realize that you have erred, apologize, and make amend is protecting the true essence of human to human interaction.' Conversely, another self-proclaimed Trump supporter commented, 'Shouldn't have said the things you did Elon. Burning bridges is something you shouldn't do. and you should know better. everybody took you in and this is how you get back wat everybody when you don't get your way.' For a man who almost never admits he's wrong, the slightest confession that he has painted himself into a corner is significant, though it's just a small blip in the flood of posting he engages in day-to-day. Even his own fans didn't seem to take it as an earth-shattering moment from a man they expect to deliver interplanetary leaps. As it so happens, around the same time last week, physicists at Loughborough University in England were getting their hands dirty with real advancements in nanotechnology and laying the groundwork for the world's tiniest violin. Measuring in at just 35 microns long and 13 microns wide, Musk's haters and boosters picked it up and played a sorrowful tune in his honor.
Yahoo
29-05-2025
- Automotive
- Yahoo
Tesla investors say company faces 'crisis,' demand Musk work 40-week at automaker
A group of high-powered Tesla investors are growing tired of CEO Elon Musk's "outside endeavors," saying in a letter to the company's board chair that the automaker is facing a "crisis" and Musk needs to return to work. According to the letter, investors are urging Tesla's board to require Musk to work a minimum of 40 hours per week at the Austin-based automaker as a condition for any future compensation plan. The letter also calls for the board to establish a clear succession plan for the company's management. 'Tesla's stock price volatility, declining sales, as well as disconcerting reports regarding the company's human rights practices, and a plummeting global reputation are cause for serious concern,' the letter, addressed to the board chair Robyn Denholm, stated. 'Moreover, many issues are linked to Mr. Musk's actions outside of his role as Technoking and Chief Executive Officer at Tesla, including his high-profile role as an architect of the U.S. Department of Government Efficiency (DOGE).' The letter coincides with Musk's confirmation of his departure from Washington, D.C., marking the end of his time with DOGE and his renewed commitment to his companies. The Delaware Court of Chancery ordered Tesla to rescind Musk's $56 billion CEO pay package from 2018 early last year. The court determined that Musk had exercised control over the company and that the board's compensation committee had misled shareholders. Additionally, reports indicate that Musk is seeking to increase his stake in Tesla, aiming for approximately 25% voting control of the automaker. Tesla has faced extensive backlash as a result of Musk's role in the federal government and close ties to President Donald Trump. Tesla's profit fell 71% in the first three months of 2025, and as of new data, sales in Europe slumped 49% in April compared to a year ago. Tesla's stock is down 12% this year. The Axios Harris Poll, which is a ranking gauging the reputation of the most visible brands in America, used to see Tesla rankd in the top 10. This year, however, Tesla dropped to 95th overall, behind six other automakers. The Axios Harris Poll, which evaluates the reputation of the most visible brands in the United States, previously ranked Tesla among the top 10. This year, however, Tesla landed in 95th place overall, falling behind six other automakers. Tesla showrooms and vehicle owners have been subjected to protests, vandalism and threats of violence. An Austin showroom was targeted in March, and the Austin Police Department's bomb squad later seized potentially incendiary devices after identifying them as a possible threat. One study found that between January and April, 46% of Tesla owners reported that their car has been vandalized, with a third considering getting rid of their vehicle within the next year. Speculation circulated after Tesla's April earnings call that Tesla's board was looking for a new CEO, which the board chair later denied. "Earlier today, there was a media report erroneously claiming that the Tesla Board had contacted recruitment firms to initiate a CEO search at the company. This is absolutely false (and this was communicated to the media before the report was published). The CEO of Tesla is Elon Musk and the Board is highly confident in his ability to continue executing on the exciting growth plan ahead," Denholm said in a statement. The investors who signed the letter own about 7.9 million shares in the company combined. According to the letter, the Tesla board is "unwilling to act in the best interest of all Tesla shareholders" by not requiring Musk's full attention on the company. The investors' letter asked Tesla to add a new independent director who does not have personal ties with other board members. Earlier this month, Tesla said former Chipotle CFO Jack Hartung would join the company's board. Hartung previously worked alongside Musk's brother and Tesla board member Kimbal Musk, who was also a board member at Chipotle. Tesla to add at least one new independent director with no personal ties to other board members. Tesla earlier this month said former Chipotle CFO Jack Hartung will join the company's board. Hartung previously worked with Musk's brother and Tesla board member Kimbal Musk, who was a board member at the Mexican food chain. Musk confirmed Wednesday that he'd rededicate more time to his companies, including Tesla, as well as SpaceX and xAI. This article originally appeared on Austin American-Statesman: Musk must work 40-hour week, Tesla investors say as company faces 'crisis'
