Tesla Motors founder Elon Musk has once again demonstrated business leadership by offering a business solution to climate change. Musk’s act of leadership is to open-source his company’s invaluable intellectual property for building world-class electric cars to the global auto industry. Musk’s actions must look crazy to many business leaders and Wall Street “financial engineers, ” and they must be questioning whether it violates Musk’s fiduciary obligation to shareholders. In fact, Musk has once again demonstrated real business leadership by creating a viable path to solving climate change that also holds the potential of accelerating his company’s financial success.
100 million fossil fueled vehicles per year is not sustainable
The global auto industry produces 100 million fossil fuel vehicles annually. (In comparison, the U.S. fleet of automobiles is approximately 250 million.) This is not sustainable in the face of climate change, continued sectarian wars in the Middle East, and the price of oil defined by its escalating and volatile pump price. Electric cars with their zero tailpipe emissions, especially if the electricity is supplied from zero-emissions renewable energy like solar and wind, is a solution. Musk’s vision is that the electric car can deliver exciting performance and cost-effective operations without damaging our planet or our health. Musk’s actions to remove the legal barriers to his company’s cutting-edge technology opens the door to realizing a sustainable car industry.
Musk defines business leadership
With rare exceptions, corporate business leadership today is defined by the CEO’s fiduciary responsibility to investors. The reward for this practice is evident by the fact that CEO compensation between 1978 and 2013 has jumped an inflation-adjusted 937 percent. The CEO compensation among the largest 350 U.S. companies now averages $15 million per year. In comparison, during this time period the stock market’s valuation only doubled. The income for the typical worker during this time period grew only 10.2 percent.
You might also like:
Elon Musk Signed Autographed Photo 8x10 Reprint RP
Entertainment Memorabilia ()