Why Tesla needs Elon Musk
Despite a slew of problems currently facing Tesla – and increased calls for CEO Elon Musk to step down from the helm of the company – the billionaire inventor should not relinquish control of the electric-car maker, according to the automotive designer Henrik Fisker.
“If Henry Ford would’ve been ousted and replaced, we probably wouldn’t have had a Ford today, and we wouldn’t have had an automotive revolution,” Fisker, the CEO and chairman of Fisker Inc., said during an interview on Tuesday with FOX Business’ Stuart Varney.
Musk is currently under investigation by the Securities and Exchange Commission after he tweeted two weeks ago that he’s considering taking the company private, and has already secured the funding.
The San Francisco office of the SEC has reportedly sent subpoenas to Tesla regarding its privatization plans to determine the veracity of Musk’s tweet and whether the billionaire inventor intentionally misled investors (shares of Tesla soared upon the initial tweet, rising more than 10%).
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 332.89 | -5.34 | -1.58% |
Although Tesla's board has yet to confirm any funding details, Musk outlined additional details in an online post, noting that he was all but certain to have landed the investment from the Saudi sovereign fund last month. Still, that doesn't confirm his statement, considered "material" and likely problematic for the SEC.
Tesla, in response, has hired two law firms, Paul, Weiss, Rifkin, Wharton & Garrison to help deal with the SEC, and Latham & Watkins to advise on privatization. Musk was already facing increased public scrutiny for production problems, and many experts speculated that he wanted to take Tesla private because he’s anticipating third-and fourth-quarter losses, and is tired of dealing with irate investors and the general demands of being a public company. (In May, Musk drew sharp criticism for what many described as a bizarre earnings call).But according to Fisker, who also designs electric vehicles, Musk needs to remain with Tesla until the company is a “well-oiled machine” that can survive without him. And Fisker would know: He once hired two CEOs to help run Fisker, but ended up being blamed for the decisions they’d made.
“I would say it has to be the founder, the guy who understands the insights and complex decisions that can be part of the development of the vehicle that has to run it for sure,” he said.