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Comment by dabinat | Hacker News Reader

The question is: what price does the stock have to reach for shareholders to kick out the board and nominate a board that will fire Musk?

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Tesla is an interesting case, because it seems clear to me at this point that Musk is both a disaster for the company in terms of actively hampering its growth and an absolute necessity for the stock price. Given that Tesla's market value is (or maybe was now? not sure) more than all other carmakers combined, it's not really justifiable on any fundamental level, since "completely taking over the new vehicle market" is priced in, and Tesla's growth... hasn't been reaching that.

Yes but every car on Mars will be a Tesla. That's like a whole planet potential of growth.

Many Tesla shareholders seem to be loyal like no one else.

It is odd, companies have been sued for less.

I think we have quite a ways to go before that. The price is still pumped pretty high compared to what it would be without the Musk hype that got it to where it is. I bet we’d see a 30-40% drop in share price if they fired him now. They’re in a no-win situation

Maybe. Current prices certainly include probability that Tesla is able to pull off major transformation into more than just a car manufacturer (batteries, supercharge network, self-driving software, etc). The implicit assumption is that Musk is helpful for that - which would certainly have been true some years ago. Getting rid of him would be an admission that the loftiest dreams won't happen as fast as some would like, but doesn't necessarily mean they're out of the picture.

Panasonic makes the actual batteries at Gigafactory on Panasonic owned/operated lines that happen to lease space inside a Tesla building.

https://en.wikipedia.org/wiki/Gigafactory_Nevada#Operations

At this point, there probably is not any price for at least the next 4 years. Angering Musk like that would risk retaliation against both Tesla, and any other company that the people who organized such a firing happens to own.

Retaliation from whom?

It's still overpriced at least 5x. They still have time to cash out.

It's up 500%+ from 5 years ago

NVIDIA stock is up 1,677.08% from 5 years ago. What's your point? What stock picker is holding those positions for that long in this day and age?

The S&P500 is up 100% from 5 years ago. If you want a long term investment, that's way less volatile than Tesla or Nvidia

His point is that many shareholders, at least the most vocal ones, are in for >5 years, and hence are sitting on huge gains. From their perspective, recent year is just normal volatility.

As for stock pickers holding positions, well a lot of people do. As they should.

My point is you're calling for his outing when stock prices are back to october levels.

I didn't call for his outing, but they are below october levels. Despite Tesla expecting to have a competitive edge due to tariffs.

Being "at october levels" still wouldn't be a good way to judge baseline. We would expect a decent stock to at least keep up with the gains of the S&P500 or some other representative index

I'm holding various stocks, most of which I plan to hold for some decades until I retire and start drawing down.

For long term holdings volatility doesn't matter much - I'm generally happy to take more volatility in exchange for higher expected returns. (Or else, I wouldn't be in stocks at all, I'd be in GICs and treasury bonds.)

(That all said, I'm not long on Tesla; I have individual short positions to roughly neutral out my Tesla holdings within ETFs I hold.)

Also up 0% from 4 years ago.

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