Odds Against Elon Musk Stepping Down as CEO of Tesla
- Tesla CEO Elon Musk is considered a visionary by business insiders
- At the same time, he’s also viewed as a loose cannon
- Regardless, sportsbooks are offering odds against Musk stepping down as head of the company
Some view Tesla CEO Elon Musk as a man with a vision beyond today. He possesses an almost cult-like following among his most ardent supporters. But his detractors worry that he is a loose cannon and that’s not a good quality for the front man of a publicly-traded company.
Elon Musk's tweets got him in trouble again — but this time it could land him in court pic.twitter.com/3X4ltDXFfk
— NowThis (@nowthisnews) February 26, 2019
Nonetheless, sportsbooks are out with a prop bet with odds favoring that Musk won’t be stepping down as CEO of Tesla, the maker of electric cars. Musk is in hot water over a tweet that the Securities and Exchange Commission alleges is in violation of a settlement agreement it had reached with him in October.
Odds on Elon Musk Outcome from Recent Tweet
| Outcome | Odds on Elon Musk Outcome From Recent Tweet |
|---|---|
| Fined by SEC only | +100 |
| Neither fined or step down as CEO | +100 |
| Both fined and step down as CEO | +500 |
| Step down as CEO of Tesla only | +1000 |
*All odds taken on 02/26/19
Musk’s often careless behavior has caused problems with regulators, stockholders, and even fellow employees.
Musk Tweet: Is He in Contempt?
At issue in his latest tussle with the SEC is a February 19th tweet Musk sent that stated Tesla would produce 500,000 cars this year, but that was incorrect. Tesla announced production plans for 400,000 vehicles in 2019.
Tesla made 0 cars in 2011, but will make around 500k in 2019
— Elon Musk (@elonmusk) February 20, 2019
Since Musk had not sought Tesla’s permission to send out the tweet, the SEC said that he was in violation of an October agreement between the two sides and asked a Federal Court to find him in contempt of said agreement.
Musk sought to fix things by posting a corrected tweet later in the day.
Meant to say annualized production rate at end of 2019 probably around 500k, ie 10k cars/week. Deliveries for year still estimated to be about 400k.
— Elon Musk (@elonmusk) February 20, 2019
A Federal Court judge has given Musk until March 11 to explain why he should not be held in contempt.
The CEO vs the SEC
It was another Tweet, on August 7th, 2018 that launched Musk’s troubles with the SEC and the ensuing battle that continues to escalate, about his musing on Twitter of plans to take Tesla private.
Am considering taking Tesla private at $420. Funding secured.
— Elon Musk (@elonmusk) August 7, 2018
His statement that funding was secured to take the company private was proven false. In the October settlement with the SEC, Musk was permitted to remain as Tesla CEO but in return agreed to his removal from the company’s board chairman position. Going forward, he now needs pre-approval from Tesla lawyers before tweeting any company information considered to be material to investors.
What it would take for Tesla to be done with Elon Musk https://t.co/cFshiY9E7T pic.twitter.com/bzaQ7agvc7
— CNN Business (@CNNBusiness) February 26, 2019
The day after his February 19th tweet, the one that once again landed Musk in hot water with the SEC, Tesla’s top lawyer stepped down.
Heck No, He Won’t Go
The SEC cannot remove Musk as Tesla CEO but a judge could. It’s unlikely that the company would do so.
"As far as I'm concerned, he's brilliant, but he conducts himself like he needs adult supervision," Omega Advisors' Leon Cooperman said of Tesla CEO Elon Musk. https://t.co/SoVJqXEp13 pic.twitter.com/uVlALtJFvm
— CNBC (@CNBC) February 26, 2019
For all the headaches he causes them, Musk is the brains behind their operation. It’s doubtful that Tesla would be a viable operation without him.
Expect Musk to be fined, and nothing more to happen.
An industry veteran, Bob literally taught the course on the history of sports at Elder College. He has worked as a Sports Columnist for Postmedia, appeared as a guest on several radio stations, was the Vice President of the Society For International Hockey Research in Ontario, and written 25 books.
