Investor's Corner
Tesla investors push for June 6 vote on overhaul of company board structure
The Connecticut Retirement Plans and Trust Funds (CRPTF) filed a proposal with Tesla in an attempt to transition the governing board’s structure to “better meet challenges the company now faces as a maturing public company.”
The proposal will be voted on by shareholders in Tesla’s 2017 annual meeting on June 6th, 2017. In support of the proposal, the CRPTF sent a letter to investors advocating its position on the proposal, requesting they vote “FOR” the proposal.
It is looking for a change from the current structure by creating a board that would be up for election annually, as a means of creating a management team more focused on delivering near term results and to ensure “board independence and director succession planning”. The CRPTF nebulously notes that it is seeking the change to create more continuity in the company.
“We believe the annual election of directors will incentivize more consistent communication between the board and long-term shareholders and strengthen alignment of interests in addressing these challenges.”
The proposal specifically calls out several risk areas based on relationships between board members outside of Tesla:
- Both the Elon Musk Revocable Trust and Kimbal Musk, Elon Musk’s brother and a Tesla director, are investors in funds advised by Valor Management Corp., of which Mr. Gracias is CEO.
- Mr. Ehrenpreis and a fund he manages are investors in SpaceX, a company founded and led by Elon Musk.
- Mr. Jurvetson is a managing director of a firm that is a “significant stockholder” in SpaceX and the Elon Musk Revocable Trust is an investor in a fund managed by the firm.
The motion continues the push by the CRPTF to shift the governance model of Tesla to what it deems a more stable structure poised to set the company up to perform well against other companies of its size. The CRPTF previously pushed Tesla to add new members that were independent from Elon Musk, something the company said it was already working on in parallel to the effort by the CRPTF. The current board is comprised of members with complex financial and family ties to Musk including his brother Kimball who has been on the board since 2004 and holds a significant amount of Tesla stock.
The letter from the CRPTF ironically cites financial studies based on traditional business models without recognizing that Tesla’s success is largely as a result of its unwillingness to follow conventional wisdom, instead building businesses from a blank sheet of paper on up.
“Finally, we believe that annual accountability can lead to increased company performance. Academic studies have found that classified boards are associated with lower firm valuation, poorer pay/performance alignment, a lower likelihood of CEO termination in the event of poor performance, and a higher likelihood of value-destroying acquisitions. Annual director elections have also been found to correlate with greater R&D expenditures that are important for future success.”
In the past, Musk has railed publicly against external pressure to modify the current structure within Tesla which is understandable based on his history. He lost control of X.com through the merger with PayPal, and coming out of the eventual sale he vowed not to let future companies slip out of his control.
Source: Tesla Investor Relations
Elon Musk
SpaceX Starship Flight 13 aborted at Zero and Musk just told us what broke
Four Raptor engines failed to ignite at T-zero, forcing SpaceX to scrub Starship Flight 13 Thursday.
SpaceX scrubbed the Starship Flight 13 launch attempt Thursday evening at the last possible moment, after four of the Super Heavy booster’s 33 Raptor 3 engines failed to ignite during the startup sequence. The 90-minute window had opened at 6:45 p.m. EDT from Starbase in Boca Chica, Texas, and the countdown had proceeded without issue all day, with more than 11.5 million pounds of liquid methane and liquid oxygen being fully loaded into the rocket before the automated abort triggered. SpaceX’s launch directors posted on X, “Standing down from today’s flight test attempt,” and shut down the livestream shortly after.
Musk confirmed the root cause within hours. “Some of the engines didn’t start, triggering an automatic launch abort,” he wrote on X. “To be confident of a good flight, 2 Raptors will be removed and replaced. Most probable launch timing is early next week.” SpaceX engineers began draining propellant tanks immediately and Booster 20 was rolled back to its hangar for inspection.
The timing adds a layer of significance that did not exist during any of the previous 12 Starship flights. This is the first time SpaceX has attempted to launch Starship since the company made its stock market debut in June, listing under ticker SPCX at $135 per share. Public investors are now watching every Starship outcome in real time, and a last-second abort carries more visibility than it would have six months ago.
Flight 13 was designed to be one of the most consequential tests in the program’s history. It was set to carry 20 Starlink V3 satellites, the first operational payload Starship has ever attempted to deploy. Six of those satellites carried external cameras to photograph Starship’s heat shield from the outside during flight, which would act as a self-inspection approach SpaceX has never attempted before. The mission also needed to complete a Raptor engine relight in space, a step SpaceX skipped on Flight 12 in May after losing an engine during ascent. That Flight 12 booster also flipped 90 degrees off course during its boostback burn when five engines failed to reignite.
SpaceX has not announced an official next launch date. Musk’s “early next week” window points to July 21 or 22 at the earliest, pending the engine swap and a return to the pad.
Lucid CEO Silvio Napoli responded to rumors of an imminent bankruptcy that was reportedly being mulled after a report stated the automaker was working with the firm AlixPartners to iron out its next steps.
The company felt a massive loss on Wall Street yesterday, as the report essentially pushed the stock down as much as 55 percent on Tuesday.
The report, published initially by Eletric-Vehicles.com, claimed Lucid was essentially in dire straits and was told by AlixPartners, a commonly used restructuring advisor, to either take shares private or file for Chapter 11 bankruptcy protection.
Lucid’s head of Communications, Nick Twork, immediately challenged the report and stated the company “has sufficient liquidity to carry its operations well into next year.”
Now, the company’s CEO is chiming in as well, stating that the report is “so far from the facts that they require a direct response.”
Napoli said:
“Lucid is not considering bankruptcy or a transaction to take the company private. Those reports are false. The Board did not explore either scenario. Period.
As disclosed in our most recent quarterly filing, Lucid has sufficient liquidity to fund its operations well into next year.
We work with outside advisors to improve operational performance and execution. They are not advising Lucid on a take-private transaction or bankruptcy, and any suggestion that they have recommended either course of action to management or the Board is false.
My priority is clear: turn this company around. That is where the leadership team and I are focused.
I look forward to providing a full update during our quarterly earnings call on August 4th.”
🚨 Lucid CEO Silvio Napoli calls rumors of financial issues “so far from the facts that they require a direct response.”
Read his full remarks here: https://t.co/t3Pg1NHvzy pic.twitter.com/LvHUPhO4Qf
— TESLARATI (@Teslarati) July 15, 2026
It seems pretty clear that Lucid is confident things will be okay, and, to be honest, they should not have much to worry about, especially considering the company has been backed by the Saudi Public Investment Fund (PIF) for years. It has solid financial backing, and its sales, while weak, are pretty much right on par with a company of this age.
Lucid also sent a Cease & Desist letter to the publication for their report.
Lucid shares have rebounded nicely and are up nearly 21 percent at the time of publication. As soon as the company dispelled the rumors of bankruptcy yesterday, the stock began to climb back toward more reasonable levels.
Electric vehicle maker Lucid Group has denied rumors of an imminent bankruptcy after a report from this morning sent the stock on a dramatic drop on Wall Street, seeing losses of more than 40 percent during trading hours.
Lucid’s Director of Communications, Nick Twork, responded to the report from Eletric-Vehicles.com, which stated the company’s restructuring advisor, AlixPartners, was asked to review two decisions: taking Lucid shares private or filing for Chapter 11 bankruptcy protection.
The report also claims AlixPartners told the Lucid board to “concentrate on Gravity production while improving its quality, and to temporarily hold back the Lucid Air, the sedan that has defined the company since its launch.”
Twork said:
$LCID The rumors are completely false. The company has sufficient liquidity to carry its operations well into next year, as recently published in its last quarterly filings, and it has not formed any special Board committee to explore the scenarios reported today. Our focus is…
— Nick Twork (@ntwork) July 14, 2026
Shares rebounded after the response to the report, halving its losses as the trading day neared 3 p.m. Eastern.
Lucid has struggled to get its sales off the ground and into more respectable numbers, but the company is in its early years, when things are hard to begin with. It is also backed by several notable investors, including the Saudi Public Investment Fund (PIF), which has nearly limitless money and likely would not ditch an investment of this size so soon.
Lucid shares were down just 14 percent at the time of publication, a far cry from the 55 percent its losses topped out at during the day.
Tesla enters two new markets on two different continents in one week
SpaceX announces new Starship 13 test flight target date
