Elon Musk: a visionary leader, or a liability for Tesla’s legacy?

Stephen Vines says Tesla has been spared a plunge in its share price after an SEC lawsuit was settled out of court, but it continues to face a challenge familiar to all companies dominated by a larger-than-life founder: protecting its legacy

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Tesla CEO Elon Musk appears on screen as he unveils the company’s new electric semi truck during a presentation in California, in November last year. It seems pretty certain that Tesla would not even exist were it not for Musk. Photo: Reuters

Stephen Vines

Stephen Vines is a Hong Kong based writer and journalist.

Published: 11:30am, 3 Oct 2018Updated: 10:33pm, 3 Oct 2018

Can the electric car company Tesla flourish without Elon Musk as chairman, or, to put it in another way, can Tesla survive with Musk in control?

What’s happening at Tesla raises this question as its volatile, charismatic and inspired founder has yet again landed in the brown stuff. He is not alone, too, as similar circumstances face many other companies that are dominated by a single personality.

The jury is out on what will happen at Tesla after an agreement was made between Musk and the US Securities and Exchange Commission (SEC). He has been punished with fines totalling US$40 million for misleading investors over a claim that he had funding in place to privatise the company. The deal also imposed significant curbs on the way Musk runs the company, by replacing him as chairman with a new independent figure, alongside two new independent directors who are required to join the board.

It seems pretty certain that Tesla would not even exist were it not for Musk and that, without him, it is questionable whether so many investors would have had faith in a company that has never made a cent, yet enjoys a market capitalisation higher than Ford, a company that has proven experience and also consistently makes money.