Friday, March 01, 2019
When a leader publicly criticizes a government agency that regulates him, it is dangerous. The agency can strike back. That is the position Elon Musk is in. He has attacked the SEC and says he doesn't respect it. The SEC in turn has asked for a contempt judgement against him. Musk is arrogant and seems to think that rules for other leaders of public companies don't apply to him. He is about to find out that they do. Will it restrain him in the future? Time will tell. He could find himself outside of the companies he founded and in a wilderness of irrelevance. If it happens, it will be his own fault, but he probably won't see it that way. Those affected with hubris tend to blame others when they fail. "It can't be me." Musk's board of directors must be in a quandary. How do they tell him to restrain his willful tweeting, especially after the SEC censured him for it? It is shaping up to be a PR disaster for Tesla and SpaceX.