Explained: Tesla shows a future without Elon Musk
Friday, October 22, 2021 | Chimniii Desk
Key Points
Tesla held its quarterly financial results conference call, but Musk, as promised, did not attend. Tesla would likely look and sound like it did on Wednesday night's call if Musk were to step down. When asked about the NHTSA's Autopilot probe, they were diplomatic, saying they "welcome the study of [Tesla's] products" and urging collaboration. Tesla is "partnering" with NHTSA on the "journey to a software-oriented vehicle," according to Kirkhorn. Tesla would likely look like the company on Wednesday's call if Musk steps down as CEO. When Musk tweets about changing Tesla's products, the company's employees are obligated to make such adjustments.
Advertisement
Pic: Elon Musk
Tesla may seem inseparable from Elon Musk, but on Wednesday night, the firm showed off what it may look like without him.
Tesla held its quarterly financial results conference call, but Musk, as promised, did not attend. Without him, the company's recent development would have been presented in a coherent (though scripted) manner.
A more controlled tone and fewer sideshows replaced Musk's remarks, albeit some CEOs contradicted themselves. Tesla would likely look and sound like it did on Wednesday night's call if Musk were to step down.
Model 3 and Model Y helped Tesla reach financial stability, and Musk has talked about leaving Tesla for years. Notably, Musk stated in court in July that he “tried hard not to be the CEO of Tesla, but I had to or it would die”.
During the first big drive to mass-produce the Model 3, he stated the company was “single-digit weeks” away from failure. The Securities and Exchange Commission sued him (and Tesla) about that time in 2018. The company's Autopilot software has also come under significant investigation.
Advertisement
Pic: Elon Musk during pandemicWith so much pressure, Musk used the quarterly earnings call to vent his frustrations. In late 2017, he slammed journalists and editors who reported on the company's layoffs. In early 2018, he stopped responding to “boring, bonehead” Wall Street analyst questions and began responding to retail stockholders. Three months later, he apologised to them. In April 2020, he called the COVID-19 shelter-in-place directives “fascist.”
That Wednesday night, none. Tesla's CFO Zachary Kirkhorn and vice presidents Lars Moravy and Drew Baglino replaced Musk. The trio bounded through pre-submitted shareholder queries and live banker questions. When asked about the NHTSA's Autopilot probe, they were diplomatic, saying they “welcome the study of [Tesla's] products” and urging collaboration.
But they still massaged. Tesla is “partnering” with NHTSA on the “journey to a software-oriented vehicle,” according to Kirkhorn. While Tesla used to require owners to sign nondisclosure agreements, they claim it is now “extremely transparent” about the Full Self-Driving beta software test.
Advertisement
Credit: Tesla Motors
The mood altered, but Kirkhorn and co. were still growth-obsessed, like Musk Kirkhorn reaffirmed the company's goal of doubling annual production. Moravy believes the Model Y will be the world's bestselling automobile. Musk has given Tesla a lot of momentum, and the executives who have stayed with him won't let up.
Tesla would likely look like the company on Wednesday's call if Musk steps down as CEO. Unknown is how Tesla would react if Musk used Twitter from a different viewpoint. When Musk tweets about changing Tesla's products, the company's employees are obligated to make such adjustments. Will Tesla's leadership give such tweets the same weight if he's demoted or fired (maybe to focus on SpaceX's expanding Texas operations)?
Perhaps Musk's public pronouncements will have less impact when he isn't CEO. Musk even suggested the stock price was too high at one point, but the market has shown its readiness to overlook him before. (Tesla's stock closed higher than ever on Thursday.)
Tesla has now profited in nine of the last 13 quarters. It still faces obstacles as it expands its factory base globally. But the company appears to be in the form Musk requires before departing. Maybe we'll get a chance to evaluate his impact on Tesla from a position other than CEO shortly.
Advertisement