Elon Musk, the billionaire entrepreneur and CEO of Tesla and SpaceX, is known for his bold claims and ambitious goals. However, a recent investigation by The Wall Street Journal has revealed that Musk’s team may have inflated, deleted, and rewritten the company’s savings claims in order to meet targets and secure bonuses.
According to the report, Tesla’s finance team manipulated the company’s numbers in order to meet Musk’s aggressive cost-cutting goals. The team allegedly inflated the amount of money Tesla saved on parts and materials by as much as 20%, deleted negative data that would have undermined their claims, and even rewrote financial reports to make the savings appear larger than they actually were.
This deceptive behavior reportedly began in mid-2019, when Tesla was struggling to meet its production targets and turn a profit. Musk had set a goal for the company to become profitable in the third quarter of that year, and the finance team was under pressure to deliver on that promise.
The Wall Street Journal’s investigation found that the team resorted to unethical tactics in order to meet Musk’s targets and secure their own bonuses. In one instance, the team inflated the savings from a cost-cutting initiative by $100 million in order to meet Musk’s target, and then deleted the negative data that would have shown the true amount saved.
Tesla has denied the allegations, calling them “misleading and sensationalized.” The company has stated that it has robust internal controls in place to prevent fraud and misconduct, and that it takes any allegations of unethical behavior seriously.
However, this latest scandal is just the latest in a string of controversies surrounding Musk and his companies. From his erratic behavior on social media to his controversial comments about the COVID-19 pandemic, Musk has been a lightning rod for criticism in recent years.
It remains to be seen how this latest scandal will impact Tesla’s reputation and bottom line. Investors and regulators will be watching closely to see how the company responds to these allegations, and whether Musk can continue to deliver on his promises in the face of mounting scrutiny.
