this post was submitted on 10 Mar 2025
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Economics

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Tesla shares plunge 15%, suffering steepest drop in five years (www.cnbc.com)
submitted 11 months ago by MicroWave@lemmy.world to c/economics@lemmy.world
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Summary

Tesla shares plunged 15% on Monday, marking their worst single-day drop since 2020 and extending a seven-week losing streak.

The stock has fallen over 50% since December, wiping out $800 billion in market value.

The decline follows uncertainty over Trump’s tariff policies, brand erosion linked to Elon Musk’s political activism, and reports of vandalism targeting Tesla vehicles.

Tesla's European sales dropped 50% in January, while global EV sales rose 21%. Analysts warn that negative sentiment and delayed Model Y purchases may further impact demand.

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[–] brucethemoose@lemmy.world 13 points 11 months ago* (last edited 11 months ago) (2 children)

A board doing its job would fire Musk as CEO.

He'd still have his shares, but clearly he is not benefitting the company right now.

[–] partial_accumen@lemmy.world 6 points 11 months ago (1 children)

They have the power to fire musk as CEO and they are choosing not to. They risk being sued by shareholders for breaching their fiduciary responsibility.

[–] brucethemoose@lemmy.world 1 points 11 months ago* (last edited 11 months ago) (1 children)

It is their fiduciary duty to fire him, but I get what you mean and agree I guess.

Just how much of shareholders' support of Musk grassroots, though? I imagine large institutions wouldn’t care if he’s out as CEO or not, as long as it’s financially optimal.

[–] partial_accumen@lemmy.world 2 points 11 months ago

Just how much of shareholders’ support of Musk grassroots, though? I imagine large institutions wouldn’t care if he’s out as CEO or not, as long as it’s financially optimal.

Sure, but Musk isn't financially optimal for Tesla, and the board has a duty to protect the shareholders. Firing Musk would be doing their jobs of protecting the company from the fallout of Musk's actions.

Also, Tesla shareholders have sued the board, and won, already once.

[–] FuglyDuck@lemmy.world 4 points 11 months ago

the board is made up of cronies, like is brother.

This is why you don't hire yes-men.