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If a full fifth of your workforce needs to be sacked, it's clearly a management issue, so let's start at the top.
He needs to fire the idiot in charge of the whole thing. I bet Tesla could make a recovery if he wasn't at its helm, even if he still owned the same amount of shares. Even more so if his ego could handle hiring a replacement that was all too happy to vocally throw him under the bus.
Thats not his job. That's the boards job. And yes, that's what they need to do.