Elon Musk is underneath siege.
The billionaire entrepreneur has been the article of public assaults for a number of weeks now by a few of Tesla’s main and most vocal retail shareholders.
The extra the inventory of the producer of electrical automobiles tumbles, the extra the assaults of those particular person shareholders redouble and grow to be violent.
There is one which stands out: it’s Leo KoGuan, a chinese language investor. KoGuan claims to be Tesla’s third largest retail shareholder after Musk himself and Larry Ellison, the co-founder of Oracle (ORCL) – Get Free Report.
In current days, KoGuan has been attacking Musk every day. He went, as he says himself, from a fan boy of the Techno king, Musk’s title at Tesla (TSLA) – Get Free Report, to the #1 opponent of the CEO. He not hesitates to accuse Musk of desirous to destroy the worth created at Tesla.
‘If I Knew I Wouldn’t Invest in Tesla’
It needs to be famous that the serial entrepreneur has not but responded to any assault from KoGuan. Tesla releases its 2022 fourth quarter outcomes on January 25. Until then, the executives of the corporate are required to look at a quiet interval, as required by inventory market laws. They can’t talk about parts that might affect the share value.
“I am 100% in Tesla bc I believe in Elon Musk and Tesla,” KoGuan wrote on Twitter on January 7. “But he is killing SH and Tesla. If I knew I wouldn’t invest in Tesla.”
“Elon invested ≈$200mm but took out $40B, Larry invested $1B, I invested over $3B, I have no choice but to act and speak out. I cry out to U for help!”
KoGuan’s anger and revolt are as a consequence of Tesla’s inventory market rout. In 2022, Tesla inventory misplaced 65% of its worth, translating to greater than $600 billion in market capitalization evaporated in a yr. Tesla’s market worth is at present $357 billion, down from over $1 trillion firstly of 2022.
While Musk attributes this inventory market catastrophe to macroeconomic elements just like the Federal Reserve’s aggressive rate of interest hike to struggle the inflation and the power disaster in Europe, many Tesla shareholders, together with KoGuan, consider that its acquisition of Twitter for $44 billion is the massive downside.
They declare that when Musk set his sights on the social media he fully left Tesla behind. Worse, he has alienated many Tesla patrons by attacking progressives and democrats on Twitter repeatedly.
“We want Elon back to Tesla, but has new seductive beauty named Twitter. Twitter is giving him ‘dear leader’ power that he craves to decide who wins, loses and dies,” blasted, on January 8, KoGuan, who invested about $3 billion in Tesla shares.
‘Blind Cult Fanboys’
To a Twitter person stating that Musk had misplaced $200 billion in private wealth on paper as a consequence of Tesla’s inventory market crash, KoGuan mentioned that was not the case.
“No no no!” the investor responded. “Not only he abandoned Tesla, his capital is also disappeared! He’s the greatest financial genius of our time. He cashed out $40B, his investment in Tesla is not nil, zero, but negative -$39B, but he owns 13.4% + vested 304 million shares. Paper lost $200B is phantom.”
“Correct,” agreed Ross Gerber, one other vital Tesla shareholder who has criticized Musk in current weeks. “Elon, hasn’t lost anything. He cashed out over $40 bil…”
KoGuan’s revolt and his name for rebel are however very badly taken by some Musk followers and members of the Tesla neighborhood. The latter defend the tech mogul and accuse the investor of hypocrisy. To which KoGuan responds by denouncing what he calls the cult of Musk.
“Everyday you tweeted about love and how you respect him,” one Twitter person tweeted at KoGuan. “As soon as stock plunged you reveled your face . Hope stock goes lower so we can filter people like you.”
“Dude, I am protecting blind cult fanboys from themselves,” the investor responded. “I was his blind fanboy, but no more. I can’t rescue Tesla alone. 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.”
He believes the time has come to restrict Musk’s powers at Tesla. For him the board of Directors should play its function.
“Leo, with all due respect, rather than stirring a rebellion (which will fail), how about working on solutions?Given your share count, @MartinViecha can be reached and can convey your concerns to CEO and BoD? Pulling retail shareholders in this ‘battle’ feels inappropriate,” tweeted at him a Twitter person who describes herself as a fan of Musk.
“I reached to both BOD and the one last year. We got unfulfilled promises. You, Elon’s fangirl, and Gary [Black, another Tesla shareholder] did petition for buyback but got the BOD and the one’s silent treatment,” KoGuan responded.
“Desperate situation requires desperate move,” he added. “We are hopeless. Doing nothing is not an option!”
BOD stands for board of Directors. “The One” refers to Musk.
He repeated the identical name for motion on January 8.
“I contacted the board and the one for about 1 year, what I got was nothing or at best only empty promises. Actually, from these interactions I found out Tesla is one man show company but it is no longer a family business. It is a public company with more than 100,000 employees.”
KoGuan, nonetheless, plans to stay a big shareholder of Tesla.
“Here is my promise unless the great Captain Larry Ellison buys more Tesla shares, I plan to have about 50 million shares to become the 2nd largest individual shareholder of Tesla by 2026,” the investor mentioned. “I welcome blind cult followers competing w/me who will own the most shares by 2030?”
Source: www.thestreet.com
