How are Tesla's (TSLA) corporate directors responding to this month's massive delivery miss, a rash of layoffs, reports of an end to a lower-priced family sedan, and a sinking stock price? They are urging shareholders to make sure CEO Elon Musk gets a hefty pay package.
In a proxy statement filed Wednesday, Tesla's board of directors made it clear that Musk is here to stay, even as calls grow louder from some investors and analysts for a leadership change. But Tesla's rough week extends beyond questions of Musk's stewardship and the board's accountability. Tesla's stock is priced for a mass-market, autonomous future, but the company is mired by a host of troubles standing in the way of that story.
"Tesla, as a stock, will suffer greatly with or without Musk," said David Trainer, CEO of New Constructs, an investment research firm based in Nashville that doesn't own shares of the automaker. "Musk's chief value-add for Tesla over the last several years has been in distracting investors from the truth about the weakness in the business that has finally and unmitigatedly emerged."
Tesla shares fell almost 3% Thursday and have slid more than 35% this year. And unlike its "Magnificent Seven" peers, which Wall Street has rewarded for announcing layoffs, Tesla shares tumbled further following news of a more than 10% reduction in global headcount.