Tesla’s recent approval of CEO Elon Musk’s $29 billion pay package has sparked concerns over the company’s governance structure and its ability to protect shareholder interests. The Corporate Governance Institute described this move as a “breaking point” for founder-led governance, citing the risks of cultural, ethical, and operational fragility. Experts warn that boards must resist the temptation to prioritize CEO power over long-term business strategy. Despite Musk’s leadership driving Tesla’s success, the company’s fragile governance structure raises questions about its ability to navigate intense competition in the electric vehicle space and maintain investor confidence.
Industry experts believe Tesla remains on track to hit a $10 trillion valuation by decade’s end, driven by its diversified ecosystem of EVs, robotaxis, humanoid robots, and energy storage. The consensus among analysts suggests a modest downside for TSLA stock price, with a 6.80% potential decline. As the debate over board independence and CEO power intensifies, investors should carefully evaluate Tesla’s governance structure and consider the implications for its long-term success.
Source: https://www.tipranks.com/news/worshipped-musk-threatens-the-health-of-fragile-tesla-claim-governance-experts