Tesla's board of directors sent a clear message to investors and shareholders on March 1.
The body wanted to show that it was not deaf to criticism.
Indeed, last year, Tesla's stock suffered a market rout that, for the first time, caused prominent shareholders to publicly criticize CEO Elon Musk and question the board of directors.
In 2022, Tesla's stock lost 65% of its value, translating to more than $600 billion in market capitalization evaporating in a year. Tesla's market value is currently $357 billion, down from over $1 trillion at the start of 2022.
For unhappy shareholders, especially retail investors, the cause of this fall in Tesla's share price was Musk. They let him know publicly, something unprecedented and unthinkable.
One of the most vocal was Ross Gerber, who held Musk responsible for Tesla's stock market crash and had repeatedly criticized the Techno King.
"Elon has now erased $600 bil of tesla wealth and still nothing from the Tesla BOD," he lambasted on Dec. 16 on Twitter. "It’s wholly unacceptable." BOD stands for Board of Directors.
Gerber went so far as to ask for a change at the head of the company. Basically, that Musk be replaced as CEO.
"Tesla stock price now reflects the value of having no CEO. Great job tesla BOD," the investor said on Dec. 20. "Time for a shake up. $tsla."
Gerber then entertained the idea of running for a position as a member of the board of directors. He eventually dropped out of his campaign, after talks with Tesla.
"After careful consideration, I’ve decided to withdraw my nomination for the Tesla BOD. As a friendly activist, I feel that shareholders have been heard. Looking forward to what Tesla has to show us next week! $tsla," Gerber said on Feb. 24.
Leo KoGuan, one of the largest retail investors in the electric vehicle manufacturer, had also expressed his displeasure.
"We need all SH and Institutional fund managers to correct the anomaly of Tesla governance bc we love Tesla. We don’t abundant the one we love; we rescue it ," KoGuan posted on Jan. 5.
"SH" stand for shareholders.
"We have an active and engaged board and management team," Brandon Ehrhart, Tesla's General Counsel and Corporate Secretary, told investors during the Investor Day. "We've met with you. And today is the culmination of that we've heard you, which is why we're excited to share this investor day with you."
He added: "Now you will hear more from our board at the appropriate time."
