Leo Koguan questions whether Elon Musk is intentionally crushing Tesla stock. Tesla’s stock was trading at its lowest level since August 2020 on Friday morning.
Koguan has criticized Musk’s preoccupation with Twitter. Leo Coguan, a prominent Tesla investor who once called himself a fan of Elon, questioned whether Elon Musk intentionally sold the electric-car maker’s stock.
According to Bloomberg, Koguan, who is one of Tesla’s largest individual shareholders, had accumulated approximately 22.6 million Tesla shares as of August 27, 2022. in response to another Twitter user on Thursday. The BOD did not stop them even in breach of their fiduciary duty.
One must ask whether both the CEO and the BOD are acting in one person in violation of the Security Act? Elon Musk sold most of his stake in Tesla after selling nearly $40 billion of Tesla shares over the past 15 months. At the time, he promised not to sell any more stock probably two years from now, but it’s a promise he’s made and broken in the past. Koguan also questioned Elon Musk’s intentions with Tesla’s stock.
Which can’t be called the biggest betrayal, if and only if true, he intentionally crushed Tesla share price and its SH for his tax benefits and potential new stock options since he is both CEO and BOD? Koguan tweeted on Wednesday morning.
Koguan directed his Wednesday tweet at Alex Lagetko, founder of VSO Capital, a small private-investment firm. Lagetko said in a lengthy Twitter thread in response to Coguan that he believes Musk would benefit from sandbagging financial results that appear to reduce sales and profits, pointing to Musk’s Tesla compensation plan — That has been challenged in a shareholder lawsuit between Tesla and Musk.
Elon Musk’s pay package is centered around a series of goalposts around the carmaker’s financial growth that were set in 2018 and the plan includes 12 tranches of stock options granted over 10 years when each milestone is passed goes. Elon Musk receives stock equal to 1% of the outstanding shares.
Elon Musk won’t offer incentives as part of a compensation plan to maximize shareholder value after he achieves all market cap milestones in 2021, Lagetko tweeted. They had every incentive to short the stock (for tax reasons) or pursue personal aspirations (buying Twitter), knowing they had a huge slug of new options they could exercise.
Elon Musk, Koguan and Legetco did not respond to a request for comment from Insider prior to publication. Tesla stock was trading around $105 per share, its lowest level since August 12, 2020, amid slowing demand from China. Earlier this year, Elon Musk became the first person to lose $200 billion in wealth.
The Tesla CEO’s fortune, largely linked to his shares in Tesla, plummeted as the company’s share price plummeted. Some analysts have attributed the decline in the stock price to Musk’s increased focus on Twitter, in addition to the economic downturn.
Koguan has been critical of Elon Musk’s involvement with Twitter. In December, he said on Twitter that Tesla needed a new CEO. However, on Thursday, Koguan said he plans to buy more than 1 million Tesla shares this month and told his followers on Twitter that he was speaking out against Musk.
He tweeted, I was his blind fan but no more. I alone cannot save Tesla. We need all SH’s and Institutional Fund Managers to fix the discrepancy of Tesla governance bc we love Tesla.
Original Content @Bussiness Insider