While Tesla could never be accused of being a conventional company, there’s something a little bit strange about its recent SEC filing.
Why is anyone surprised that, of all the CEOs on Wall Street, Elon Musk would be the one to give himself a quirky title?
But is there a bit more to it?
Do we need to bow?
There’s no mention of a ‘bowing’ in the Form 8-K filed by Tesla (NASDAQ: TSLA) on Monday, which announced that CEO Elon Musk now commands the official title of “Technoking”, while CFO Zach Kirkhorn shall henceforth be referred to as “Master of Coin.”
The change has grabbed all the headlines, but if you look a little deeper into the company’s recent SEC filings, you will spot some pretty significant other news:
Tesla has moved its former president of Automotive, Jerome Guillen, into the role of president of Heavy Trucking, a role with significantly less responsibility.
So, in the words of MyWallSt Head Analyst, Rory Carron:
“It’s [the title changes] a good way to distract from the real news that their head of automotive has been given the shift!”
Although no official reason for this change has been given, it seems pretty clear. While Tesla has thrived since Guillen took the role in Q3 of 2018, quality control has been left wanting. Following tens-of-thousands of recalls in 2020, Tesla has grappled with no less than 3 separate mass recalls, amounting to almost 200,000 vehicles in 2021 alone — a major problem for a manufacturer which delivered just shy of 500,000 total vehicles in 2020.
What’s more, the National Highway Traffic Safety Administration (NHTSA) is again investigating Tesla for issues surrounding its autopilot system, with new restrictions on production and testing potentially in the pipeline.
So is there a coverup taking place at Tesla, and if so, why? Have Guillen’s talents simply been redeployed to the company’s potentially game-changing Semi production unit, or does Elon want to bring in a firmer hand that can steady the ship amid growing competition in a market where quality control could be make-or-break?
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MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here.