While many commentators have expressed disbelief that a CEO is not aware of the Company’s discounting practices, let’s give Mr. Musk the benefit of doubt. It is not that difficult to see that this unfocussed CEO does not know what is going on in his Company. Life is too busy contemplating life on Mars and trying to force the wrongheaded acquisition of SolarCity (NASDAQ:SCTY).
However, if Mr. Musk did not know the sales practices at Tesla, it brings forth a whole different set of questions:
- How can a competent CEO not know the sales practices at his Company? If the argument is that Mr. Musk does not have the time, then we suggest that the Company’s board is once again asleep at the wheel.
- What was Mr. Musk expecting that his sales teams would do when he sent a company-wide email to push hard to get strong Q3 results ahead of capital raise?
- Does Mr. Musk not discuss sales and promotional strategies with his sales and finance teams?
- Is Mr. Musk not aware that Tesla builds spec cars (also called “inventory”) which are not build-to-suit?