The board of directors of Tesla Ousts 4 pro-Elon Musk directors, Weeks after the shareholders

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By CCN.com: Four members of the Tesla Board of Directors retire and do not stand for re-election once their term expires. CEO Elon Musk remains, but Tesla's board will grow from 11 to 7 members by 2021.

The electric car manufacturer revealed this startling news on April 18 SEC deposit. Tesla said the realignment was needed to streamline the board so that it could "run faster and more efficiently."

The four outgoing board members are:

  • Brad Buss.
  • Antonio Gracias.
  • Stephen Jurvetson.
  • Linda Johnson Rice.

The shareholders of Sued Tesla, the 11-member board

The changes come several weeks after the 11-member Tesla board was sued by a group of shareholders.

In their lawsuit in March 2019, the shareholders accused the board of directors of not having exercised adequate supervision over Elon Musk, whose tweets have sometimes put him in trouble.

The shareholders – an Ohio pension fund – are seeking a permanent injunction against Musk for "his uncontrolled use of Twitter in order to make inaccurate statements about the company." They are also seeking an unspecified amount of monetary damages.

Elon: "Wake up Sheeple!"

Musk did not tweet about the changes to the board, mainly because he is not allowed to do so in the middle of his quarrel with the Securities and Exchange Commission.

However, Elon dropped some curious tweets a day after Tesla was filed with the SEC.

In one of them, he just joked, "Wake up sheep!" Twelve hours later, Musk wrote, "At work …"

Law Professor: "The musk crew" must be dissolved

Stephen Diamond is an associate professor at the Law School of Santa Clara University. Previously, he represented the investment group CtW, which sought to reshuffle the Tesla board, which he disdainfully called "the Musk crew".

Diamond says the resignations of pro-Musc directors will help the board better monitor the Tesla CEO.

"It solves the fundamental problem," Diamond told MarketWatch. "You did not help Musk by having a painting that behaved like a cheerleader and an echo chamber."

Tesla is preparing for the loss of the first quarter

At the same time, the first quarter results of Tesla should be disappointing. Tesla will release its first quarter results on April 24. The company has already forecast a loss for the first quarter after two profitable quarters.

Garrett Nelson, an analyst at CFRA, believes the benefits could be disastrous, given Tesla's recent delivery incidents.

"We suspect that EPS Q1 could be a total disaster, given that Tesla guided for a loss with a whole month remaining in the quarter."

The billionaire bypasses Tesla and jubilates against the woes of Musk

Not surprisingly, Musk's critics are savoring the bad news. Last week, hedge fund billionaire David Einhorn said "the wheels are coming off – literally" at Tesla.

And Einhorn could not be happier. Its investment company, Greenlight Capital, has been reducing the Tesla stock for several years. As a result, he makes piles of money every time Tesla loses money.

In August 2018, Einhorn posted short film photos on his Twitter account – a sneaky reminder to the world that he was bypassing TSLA. Of course, Einhorn's celebration was premature, as he had lost millions of dollars last year when Tesla exceeded his expectations.

A billionaire has lost millions betting against Tesla

As reported by CCN, Greenlight Capital lost 34% last year, making 2018 the worst year since the creation of David Einhorn in 1996.

In the first six months of 2018, Greenlight Capital lost 18.3%. In contrast, Tesla's shares rose 29% during this period, making TSLA the "second-biggest loser" of the fund for this period.

In short, bet against Elon Musk and Tesla was a losing proposition for Einhorn in 2018. Does history repeat itself this year? Stay tuned.

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