An unsettling period of tribulation appears to mark Tesla’s current state, headlined by plummeting electric vehicle sales, depreciating stocks, hundreds of employee terminations, and a dampered morale. Coupled with dissatisfied investors urging CEO Elon Musk to ameliorate Tesla’s issues, Musk constantly finds himself distracted with the affairs of Twitter’s successor, social media platform X.
According to Bloomberg authors Dana Hull and Kurt Wagner, Musk appears scatterbrained, juggling concurrently the operation of several companies. In addition to Tesla, Musk’s “corporate universe” spans companies like spacecraft manufacturer SpaceX, social media platform X, tunnel construction firm the Boring Company, neurotech start-up Neuralink, and AI company xAI.
The Musk empire, informally referred to as Elon Inc., employs over 130,000 global members. Though a disparate conglomerate of companies, Elon, Inc.’s threads of operation converge at a single point – Musk himself. Surrounding Musk, his circle of key advisors, consultants, corporate directors, and even family members assist in orchestrating the activities across the entireholding’s assets. Whether they receive compensation for their efforts remains undisclosed.
During the successful reign of Tesla and Musk’s other ventures, investors overlooked the complexities bestowed by such an executive model. However, accumulating issues now form a metaphorical snowball. Alongside Tesla’s dwindling sales and stock value, SpaceX’s internet project Starlink has come under fire. Illegal distribution of access terminals to countries like Sudan and Yemen have sprouted on the black market, tarnishing the company’s reputation.
Musk was reluctantly compelled to reinstate unlawfully fired employees and compensate them via social media platform X, as ordered by a court. Such failures have siphoned a substantial amount from Musk’s personal fortune – as per Bloomberg’s report , his net worth diminished by $27 billion since the beginning of the year. It could just be the chief instalment, assuming Tesla shareholders fail to approve a $56 billion compensation package for Musk at the forthcoming meeting. This unprecedented compensation package, the largest in United States history, was cancelled in January following a Delawarian Chancery Court ruling claiming the package did not serve shareholder interests.
Experts and activists suggest that Musk’s excessive involvement in various companies is currently working against Tesla’s investors. Over the past year, the company experienced significant employee attrition in top-tier management, followed by worsening financial indicators, indicating growing risks for shareholders. Thus, the erstwhile unsinkable empire of Elon Musk is navigating through a storm.
