The analysts from Jefferies have expressed concerns about the potential adverse effects on Tesla due to Elon Musk’s leadership style. They have highlighted the need for the Board to design compensation plans that incentivize technological innovation and ensure sustainable operating performance. They have also pointed out that Musk’s inclination to lose interest as competitiveness grows could pose challenges for the company’s execution. The analysts have observed that Musk’s reluctance to delegate leadership and responsibilities may undermine execution at Tesla.
They have contrasted this with Musk’s other ventures, such as SpaceX and Starlink, which operate in less competitive environments. Moreover, they have noted Elon Musk’s pivotal role in steering Tesla through difficult times, including periods of near-bankruptcy. In addition to these concerns, Jefferies analysts have discussed two specific proposals related to Tesla – the company’s proposed move from Delaware to Texas and the ratification of Elon Musk’s 2018 CEO Performance Award. If you have any news tips, feel free to reach out to us.