I believe Musk’s actions are harming Tesla’s stock price

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Callatoroy

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Question for the board lawyers. Are there grounds for suing Musk to either oust him from his role at Tesla or seek financial remedies based on his lack of focus on Tesla? I got out about a year ago so I don’t have any skin in that game but if I was a shareholder I’d be pissed about right now.
 
I am no expert on law or stocks. But, the other day I was wondering how strange Tesla's stock was considering there seems to be a total lack of fundamentals supporting it. So guess its a speculative stock or something. If that is true, then I would think a lawsuit would be a waste of time.
 
BlueSmoke said:
I am no expert on law or stocks. But, the other day I was wondering how strange Tesla's stock was considering there seems to be a total lack of fundamentals supporting it. So guess its a speculative stock or something. If that is true, then I would think a lawsuit would be a waste of time.
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I think the brand and the self driving technology was driving a lot of it. Now their brand is poison so the only thing left is the self driving tech and maybe some less valuable tech with the batteries and manufacturing. Their self driving was revolutionary and ahead of everyone else for awhile but I think waymo/google and Mercedes are both ahead of them now.

But they still have some good tech and more visual road data than anyone. Its not worthless and they are making strides with their robo-taxi. Even if they go Delorean, they can still sell that tech to other car companies.
 
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BlueSmoke said:
I am no expert on law or stocks. But, the other day I was wondering how strange Tesla's stock was considering there seems to be a total lack of fundamentals supporting it. So guess its a speculative stock or something. If that is true, then I would think a lawsuit would be a waste of time.
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It is speculative.

It's been overvalued for years based on his annual promise that next year they will have fully autonomous self-driving cars.

Like the promise of cold fusion, it will never actually happen.
 
Callatoroy said:
Question for the board lawyers. Are there grounds for suing Musk to either oust him from his role at Tesla or seek financial remedies based on his lack of focus on Tesla? I got out about a year ago so I don’t have any skin in that game but if I was a shareholder I’d be pissed about right now.
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Firing him would destroy the stock. Tesla trades at a premium b/c the mkt thinks elon/the company will innovate something in the future. Without elon, tsla would trade closer to other auto companies (= <$50 stock).
 
I just wish my large cap index would drop them before it's too late. They are currently the boat anchor of the fund.
 
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I was thinking about this today after reading news that Apple has partnered with SpaceX and T-Mobile to integrate the Starlink network into iPhones... I think Musk is sacrificing Tesla while stockpiling wealth everywhere else.
 
Focker said:
Firing him would destroy the stock. Tesla trades at a premium b/c the mkt thinks elon/the company will innovate something in the future. Without elon, tsla would trade closer to other auto companies (= <$50 stock).
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That’s actually a good point. Not suggesting they fire him but imo his DOGE actions clearly impact the stock price. As the CEO I’m thinking the law would require him to take a fiduciary position and not take on controversial side gigs that harm the stock price.
 

Tesla shares have fallen more than 40% since January — erasing all of the “Trump bump” that briefly saw the stock gain more than 90% after Election Day. Musk, whose wealth is overwhelmingly linked to his Tesla holdings, has personally lost $121 billion from his net worth over the past three months.

There are two main reasons:

Tesla sales are cratering around the world, and…
Its CEO isn’t doing anything to stop it.

In China, in particular, Tesla is struggling to compete against domestic carmakers. Last month Tesla shipments in the country fell 49% year-over-year. Europe sales are also slumping, particularly in Germany, where consumers have been outraged over Musk’s support of a far-right nationalist party with links to Nazis. Sales tumbled 76% in Germany last month from a year earlier.
 

Could Elon Musk Face Margin Call Over Tesla Stock? What We Know​


www.newsweek.com

Could Elon Musk face margin call over Tesla stock? What we know

As Tesla's share price continues to decline, Musk is at risk of defaulting on his past personal loans.
www.newsweek.com www.newsweek.com

“… Musk is currently close to facing a margin call on the loans used to facilitate his 2022 purchase of Twitter.

Tesla shares were changing hands at $225.31 ahead of Wednesday's market opening. The stock is down 41 percent since the start of the year, 47 percent since Trump's inauguration, and 38 percent in the past month.

… Should Musk be forced to sell some of his shares to cover his personal loans, this could cause Tesla's stock to decline further, as the company has warned previously.

… In Musk's case, the price of Tesla stock used as collateral would fall below a certain price point, at which point he would be forced by the broker to either deposit more funds or liquidate assets—such as his holdings in Tesla or his other companies—to bring the account back to the required level.

… According to a 2024 Tesla filing with the Securities and Exchange Commission (SEC), Musk has pledged 238.4 million shares "as collateral to secure certain personal indebtedness." At the time, Musk held a total of 715.0 million shares, meaning approximately one-third were being used as collateral for personal loans.

… According to certain reports, Tesla's stock would have to decline to $114 for Musk to face margin calls on these loans, equating to a 50 percent drop from its current price and below the minimum price targets currently set by analysts. …”

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It remains a remote risk at this point, and Musk should be able to negotiate a solution to provide other sources of collateral in advance of the margin call happening, but something to watch for Tesla shareholders.
 


“… “Investors need to see Musk take a step back and balance his DOGE and Tesla CEO roles,” Ives said. “If he does this the heat from Musk around DOGE will start to dissipate among most of the critics.”

… Second, Musk needs to provide a road map and timing for the 2025 release of its new lower-cost vehicles, as well as details around its full-self-driving car launch in June, he said.

Ives’ commentary on Tesla has grown sharper compared with his comments on March 11, when Ives said Musk must “step up” to improve the performance of the company.

Basically, Ives said for him to keep defending the stock like he has “again and again over the years,” Musk needs to repair the damage he has inflicted on the brand.“

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This analyst is a major Musk/Tesla cheerleader.
 
I have a co-worker that has Fox News on in their office all day. Everytime I saw it they were either justifying immigrant's deportation or vandelism against Tesla cars and dealerships. Funny how it wasn't a big story when rednecks were vandelizing Tesla cars and chargers.
 
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