Tesla: Pigeon CEO, Overcompensated Captive & Ineffective Board, Failed Targets

Final Up to date on: eleventh July 2025, 12:02 am

By all accounts, I used to be categorized as a Tesla superfan for a few decade. I defended Tesla, and the face of Tesla himself, Elon Musk, numerous occasions. The corporate and its CEO had been typically misunderstood from what I noticed. I stand by these defenses — most of them. And Tesla did additionally obtain superb issues in that decade. Nevertheless, there have been additionally clear seeds of issues, and notable issues underneath the floor, that I absolutely didn’t pay sufficient consideration to till this decade, and particularly current years. Up to now few years, although, enormous issues have shaped and little issues have grown.

In current months, a few reader feedback actually jumped out at me about core, notable issues on the firm. I didn’t actually know what to do with them for some time, however studying the information at the moment about Tesla’s concerningly delayed annual shareholder assembly, these two feedback got here to thoughts once more and it appeared prefer it was time to focus on and focus on them.

The primary remark is an easy one, however one thing I hadn’t heard earlier than. “I’ve heard from just a few ex-employees (so take it for what it’s value) that Elon is a ‘Pigeon CEO’. Flys in randomly for a couple of minutes, craps throughout every part, then flys away for one more month,” one reader wrote. That definitely seems like what I’d anticipate, given how a lot time Musk spends tweeting, at political occasions, and at large occasions and events (the Tremendous Bowl, the World Cup, Trend Week, and plenty of different occasions). Now, that is one thing that will need to have modified over time, although. It appears he used to spend nearly all of his time working at Tesla and SpaceX, principally Tesla. Nevertheless, in recent times, he’s been closely distracted by different issues and it has appeared unbelievable that he’s working full time at Tesla. So, it’s not that shocking to listen to that he’s been categorized by employees as a “pigeon CEO.”

Oh yeah, and let’s not neglect that he has no less than 12 children.

Anyway, with Tesla gross sales floundering for the previous couple of years, minimal new product launches and automobile upgrades, and the competitors more and more consuming Tesla’s lunch in China and Europe, it’s exhausting to not suppose that Musk’s intermittent and erratic work at Tesla shouldn’t be adequate for the function of CEO.

That stated … downside #2 is the individuals who must be ensuring the CEO is up for the job. That will be the board of administrators.

The second reader remark, from “Marc GP,” said: “It’s not simply that Musk has a lot voting energy (22% stake) at Tesla, however that the board may be very properly paid and purchased for. They earn 100x what board members on comparable corporations earn at their place (a whole lot of thousands and thousands, a lot {that a} Delaware court docket simply compelled them to return one billion again for extreme emoluments). Would they ever put that in danger?” Marc linked to this text to again that up. Earlier than I get to that article, although, 100x what board members at comparable corporations earn?! That’s wild. No marvel they aren’t doing something. They’re getting away with theft — insane theft. As Marc stated, why danger that?

The article referenced the now well-known/notorious Delaware court docket case relating to Musk’s compensation, which additionally lined the board’s compensation. Right here’s extra: “The lawsuit, led by the Police and Fireplace Retirement System of the Metropolis of Detroit on behalf of Tesla shareholders, alleged that Tesla board members awarded themselves extreme compensation. Whereas the common annual compensation for an S&P 500 board member is barely over $300,000, Tesla’s board members had been accused of receiving a whole lot of thousands and thousands of {dollars} in the course of the interval in query.

Underneath the phrases of the settlement, the board members agreed to:

• Return $277 million in money to Tesla.
• Give up $459 million value of inventory choices.
• Forgo $184 million in inventory choices granted from 2021 to 2023.”

Insane.

And remember that the corporate’s gross sales, income, and income have gone down up to now {couples} of years.

Tesla retains lacking its targets. However what are you able to anticipate from a pigeon CEO and a captive, vastly overcompensated board?