Tesla's Wild Ride with a CEO Who is Too Big to Fail

Can a CEO be too big to fail? In this episode of Bite-Sized Business Law, we dive into the volatility, legal wrangling, and power dynamics surrounding Elon Musk and Tesla with Ann Lipton, a leading scholar in corporate governance and business law and the Laurence W. DeMuth Chair of Business Law at the University of Colorado Law School. As Tesla’s stock swings wildly, Ann unpacks why Musk’s leadership is both the company’s greatest asset and its biggest liability. We explore the limits of shareholder power, the high-stakes Tornetta compensation case, and the board’s passive stance amid Musk’s increasingly controversial behavior, including his public spat and attempted reconciliation with President Donald Trump. From legal blind spots to governance breakdowns, this episode offers a timely look at how personality, politics, and corporate law collide in today’s markets. To hear what’s next for Tesla (and what it reveals about the future of corporate leadership), tune in today!

Key Points From This Episode:

• From civil rights dreams to securities law reality: Ann’s professional journey.
• Tesla’s rollercoaster stock volatility explained.
• Why Musk’s recent political antics spooked shareholders.
• The board can’t fire him, but can they rein him in?
• What CEO compensation packages are really for.
• Signs that the Tesla board is too close to Musk.
• The next pay package: a major test of board independence.
• Legal hurdles blocking shareholder lawsuits.
• How Tesla’s move to Texas weakens corporate accountability.
• Ways that Musk’s split focus puts Tesla’s future on the line.
• One CEO running multiple companies: a governance nightmare!
• Robo-taxis, hype, and the risks of reckless innovation.

Links Mentioned in Today’s Episode:

Ann Lipton

Ann Lipton Blog

Shareholder Primacy Podcast

'The Legitimation of Shareholder Primacy'

Ann Lipton on LinkedIn

Ann Lipton on Bluesky

Fordham University School of Law Corporate Law Center