Elon Musk's EV company is struggling as he plunges into politics. Robyn Denholm, the Australian chair of Tesla, is thriving after cashing in half a billion dollars of the stock. Investors are clamoring for her to rein in the world's richest man - but some question whether she has the independence to do so.
The article from Reuters discusses the performance and governance issues at Tesla under Elon Musk's leadership, focusing on the role of Robyn Denholm, who was handpicked by Musk to chair Tesla's board. Despite Tesla's stock plummeting by 32% in 2024, Denholm has seen her compensation increase significantly, with her pay package now valued at $280 million, largely due to stock options. The piece highlights the lack of independence in Tesla's board, with Denholm's close ties to Musk raising questions about oversight and accountability. It also notes that while Tesla faces numerous challenges including production delays, quality issues, and regulatory scrutiny, Denholm has not been proactive in addressing these concerns, instead focusing on her financial gains from her position. The article suggests that this situation exemplifies broader governance problems at Tesla, where the board's alignment with Musk's interests might be at the expense of shareholder value and corporate governance standards.
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