Musk bickers with Tesla investors over board
Says disgruntled shareholders ‘should buy Ford stock’
Tesla CEO Elon Musk sparred this week with a group of investors who called on the company to appoint more independent members to its board of directors.
The billionaire entrepreneur said on Twitter the investors “should buy Ford stock” because “their governance is amazing,” in a coy reference to the fact the Dearborn, Mich.-based automaker remains controlled by heirs of founder Henry Ford.
Musk’s remarks came after the investors issued a public letter Monday praising Tesla’s “phenomenal growth” but assailing the Palo Alto, Calif.-based company for “the conflicts of interest that permeate this board.”
“Five of six current non-executive directors have professional or personal ties to Mr. Musk that could put at risk their ability to exercise independent judgment,” the investors wrote. “A thoroughly independent board would provide a critical check on possible dysfunctional group dynamics, such as groupthink.”
The investors who signed the letter include New York City’s asset managers, public pension plans in Connecticut and California and private firm CtW Investment Group.
In separate tweets, Musk suggested he has already recognized the need to bring two more independent voices on the company’s board, which currently includes his brother, Kimbal, and other close supporters.
The investment group cited several looming challenges, including Tesla’s consistent losses, the start of battery production at a plant in Nevada, the integration of SolarCity and the task of launching production of its Model 3 mass-market electric vehicle.