FLASH: Tesla stock under pressure, Musk’s leadership called into Question.
Shares of Tesla (NASDAQ:TSLA) are under heavy selling pressure now on a slew of recent reports that shed light on Elon Musk’s leadership style. And it calls into Question whether employees believe he is suited to lead the company.
Blind, an anonymous workplace community, was commissioned to survey employees of Tesla and SpaceX, after a 2X dose of bad news last week: that Tesla is shuttering most of its stores, and that the SEC is seeking to hold CEO Musk in contempt over recent Tweets about the company.
Blind says that 235 people took the survey, with 131 employees, or 55.74% of respondents, saying they were confident that Mr. Musk is fit to lead the fledgling EV maker.
Blind said that 104, or 44.26%, are not confident that Mr. Musk is fit to lead.
Blind conducted a survey less than 2 weeks earlier showing that over 77% of Tesla and SpaceX employees were confident he was fit to lead.
Last week, the EV maker announced plans to shutter most of its stores and transition to only online purchasing catching many employees by surprise and several salespeople only found out about the move through a public post from the “Tesla Team.” Begging the Question: What Team?
Mr. Musk has a contentious relationship with the SEC stemming from his unsupervised Tweeting about the company.
He and Tesla each agreed to pay $20-M over Musk’s tweet that he was considering taking Tesla private at 420/share the infamous “420″ funding claim. As part of the settlement, Mr. Musk had to step down as Chairman of the company and also agreed to get legal approval for any tweet that could materially impact the company.
SEC officials claimed last week that Mr. Musk violated the settlement when he Tweeted that Tesla would produce 500,000 cars in Y 2019. Several hours later he Tweeted a follow-up, noting “deliveries for year still estimated to be about 400-K.”
Tesla still faces scrutiny from all sides: legislators, shareholders, activist investors, media, and former executives who have ankled the firm. Given that scrutiny, Blind conducted a survey from 14 – 21 February to gauge how much current employees believe that Mr. Musk is fit to lead. He failed.