Galileo Russell: Tesla going private would be “a step back” in transparency and liquidity

[strangecosmos]

I think all other reasons are secondary but the primary one is control. Elon Musk wants to have a better control of the company.

From Elon’s letter to employees, posted on the Tesla blog:

“Finally, this has nothing to do with accumulating control for myself. I own about 20% of the company now, and I don’t envision that being substantially different after any deal is completed.”

Still, it might give him more control in the sense that it will put more shares in the hands of supportive shareholders who are less likely to challenge his leadership.

 

[Tam]

...From Elon’s letter...

Thanks for the quote of denial because in theory, 20% is not a majority so he is right that he can't monopolize the firm.

However, in practice, he shows his intent to gain more control by continuing saying:

"Basically, I’m trying to accomplish an outcome where Tesla can operate at its best, free from as much distraction and short-term thinking as possible, and where there is as little change for all of our investors..."

He basically reminds that it's the singular "I" that wants to steer the direction of the firm!

Of course to gain control he wants to:

1) reduce distraction
2) reduce short-term complaints
3) have "little change" in here means less choice, less flexibility once going private.

The problem with filtering out public input is Tesla would continue to have an interior free of cup holders, free of coat hooks, free of foldable feature for second row seats for Model X, free of ceiling grab handles for seniors like myself due to his minimalization philosophy.

It's a trade off.

But in the end, I think the Board would give Elon Musk what he wants: More controls because they believe he can accomplish more efficiently if there's fewer oppositions or those who keep questioning his every small step such as "Where are my ceiling grab handles?"

 

[strangecosmos]

The problem with filtering out public input is Tesla would continue to have an interior free of cup holders, free of coat hooks, free of foldable feature for second row seats for Model X, free of ceiling grab handles for seniors like myself due to his minimalization philosophy.

Elon and others at Tesla should definitely keep listening to constructive feedback from customers. But I think Elon should hire a team of assistants who go through his Twitter @ replies and find the constructive feedback, while muting or blocking anyone who is rude. They can give him a daily list of tweets he might find helpful, interesting, or important. Otherwise he is wading through a lot of abusive content which takes a psychological toll.

Beyond Twitter, there is a lot of stuff in the news media to ignore as well. People writing rude articles or saying rude things on CNBC, without contributing anything that Tesla could actually act on and improve. I have to imagine the temptation to look at this stuff is almost irresistible. But it’s damaging to read and hear, and I think Elon and other execs should try to avoid it.

Imagine Beyoncé reading thousands of rude things people write about her online. Seems absurd right? She should just focus on making music. If there is some legit issue, she has people working for her who can surface that stuff to her. I think Elon, JB, et al. should follow this approach. Stay above the noise, get quiet, get focused, go deep, and count on people you trust to interrupt your flow when there is something that needs your attention.

P.S. Fun fact: Elon’s mom, Maye Musk, was in Beyoncé’s music video for “Haunted”.