Elon Musk: SEC Chaos Might Allow Tesla CEO to Work on Less ‘Boring Projects
If Elon Musk was busy last week, he’s swamped this week. The workaholic Tesla boss has his hands full at the best of times overseeing one of the world’s most valuable car companies (Tesla), a ground-breaking private space exploration enterprise (Space X) and his lesser-known but equally interesting public-transit company (The Boring Company). Telsa has been occupying a lot of media coverage lately, withsafety concernsandcompany layoffs. On Monday his schedule got even more hectic as he was forced tofile a response to a worrying SEC complaintwhich wants to hold him in contempt of Federal Court.
The SEC want to stop him tweeting, and Elon said (roughly speaking) “you can take my titles, but you’ll never take my tweets”citing his first amendment rights. Many political commentators thought this wasabsolutely the wrong way to go. There was some great news on Wednesday for The Boring Company though, and evidently, Musk wasn’t going to miss the chance to get his fingers tapping,
Looking forward to building a Boring Company tunnel in Vegas. Assuming to be operational by end of year!https://t.co/cSSO4SJ140
— Elon Musk (@elonmusk)March 12, 2019
What Next For Musk When the SEC Dust Settles?
So what happens next?Well if he’s found guilty, he could potentially be banned from tweeting, face a huge fine and/or lose the Tesla CEO position. He hasalready given up as Chairman, but Chief Executive Office could be a more significant blow to the company. At this pointdoes Musk even care?I would argue possibly not.
Space X Can Help us Reach Another World, But the Boring Company Can Improve This One
Elon Musk is an innovator and a problem solver first and a businessman second. What he excels at is creating groundbreaking products and marketing them in a way that generates an almostreligious following. Tesla launched an electric car when no one could make one thatlooked and performed better than a cereal box. He changed the plug-in vehicle game forever. But now what? Its alreadyworth more than GMand electric cars are becoming the norm rather than the exception, as is development in self-driving technology. Teslas use rubber tires and environmentally expensive battery manufacturing processes.Most of their charging stations use dirty power grids like everyone else.
Even the most ardent supportershave to admit that they are still an environmental negativewhen charging their Model S, 3 or X. Don’t even think about what we are going to have to do todispose of the batteries when they are spent in 20 years. You can’t just melt them down like a regular car. Add in the fumes and fuel from Space X-ploration and Musk isn’t looking like the tree-hugger he was accused of being at the beginning of all of this. Enter the Boring Company.
Musk Is First of All a Visionary
Elon Musk loves to be on the cutting edge of innovation and Tesla is the mainstream now. It’s Beverly Hill’s Prius (a little joke for the Los Angelenos there). His biggest goal is he wants to get to Mars, but for sure he wants to keep making a difference on earth too. As a resident of the West-Side of Los Angeles, Musk knows what pain traffic causes in urban areas as much as anyone. Well, the Boring Company seeks to solve these problems by creating a more efficient, speedier and safer public transportation system. In LA everything is so built up over the ground, underground provides a unique opportunity.
This is where Elon can be an environmentalist. He knows thatchanging car motors to electric doesn’t get the life-shortening particulates out of our citiesand that Lithium is a nightmare to procure. The real answer to urban pollution is to get cars off the roads or at least reduce their road time.
More Attention Will Improve Boring’s prospects
His incredibly hectic schedule has at times made it seem like The Boring Company was an afterthought, and somestruggles with Californian bureaucratsmay have dented his enthusiasm. Musk is no stranger to legal obstacles after launching Telsa’sdirect to consumer business model, and it is great to see theCity of Las Vegas apparently on board with what Boring are trying to do. The proposed loop for the tunnel would help ease congestion and provide transport from the Las Vegas International airport. All for a staggeringly low cost of $35 to $55 million! California can barely build a public toilet for less than $100 million.
Tesla is Fully Evolved, It’s Time to Let Go
Losing the Tesla CEO position might be exactly the jolt Musk needs. Of all his companies, Boring Company needs him the most. A safe pair of hands could push Tesla along at this point. All you need is to avoid scandals and keep coming up with fun updates for the cars. Much likeTim Cook is doing at Applewithout Steve Jobs. Musk has laid out enough of a vision for the future of the company with all the planned models that there isn’t much “envisioning” left to do. Boring Company needs a push at this stage; however, as with Urban centers around the worldincreasingly getting busier, infrastructure is groaning.
Lack of Urban Infrastructure a Major Obstacle to Global Growth
The US Government have so far failed to address this issue meaningfully. With all the talk of the wall and raising taxes and Russia, everyone has forgotten that both sides want to spend money on theUS’s crumbling infrastructure. Bi-partisan concessions or agreement seem to be toxic in Washington at the moment, which is a shame as it means this vital project is, once again, left to gather dust on the steps.
Boring by Name, Not By Nature
Look at how the Boring Company came to be created in this quote from Musk onJoe Rogan’s show,
“I have this, it’s sort of a hobby company, called The Boring Company, which started out as a joke, And we decided to make it real and dig a tunnel under LA. And then other people asked us to build tunnels, so we said yes in a few cases.”
Well, what started as a joke might turn out to be pivotal in making the 15-mile, 2-hour commute a thing of the past. It could be Musk’s enduring legacy if he doesn’t get people to Mars.
While I’m thinking about it, someone @ Elon musk or The Boring Company and ask him/them to take overCalifornia’s high-speed rail project. Billions could be saved as they wouldn’t need to worry about buying so much land. It could also be more direct as it wouldn’t affect any protected areas. Get digging guys.
About The Author
Financial trader and speculator from Great Britain living in the Hills in Los Angeles. J.D but very much not a lawyer. Favorite trading books are anything written by Jack Schwager.