Question
Investor influence can significantly affect the decision-making process in a company. Investors often have a say in major decisions, especially if they hold a significant amount of shares. They can influence the strategic direction of the company, its financial management, and even its operational aspects. However, the extent of their influence can vary depending on the agreement between the founders and the investors. In some cases, like Tesla, investors can gain control of the company if they invest a significant amount of capital or if the founders decide to step down.
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Why do some companies, such as Airbnb, Facebook, and SpaceX, remain under the control of their founders, while others transition into the hands of their investors? Take Tesla, for instance: the original founders were Martin Eberhard and Marc Tarpenning. After three years of developing a prototype from 2001 to 2004, they met Elon Musk, an early investor who now controls and serves as the CEO. How and why do these shifts in control happen? What determines who ultimately controls a company?
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