Tesla may do any number of shady or illegal things but without Musk and his vested interest in the company it would probably be a footnote in some corporate obituary.
Otherwise you incentivize hiring fall guys to do a crime and go to prison, while the shareholders profit off of their crimes
Take your bank as an example. You gave them the money they used to commit whatever illegality and you profited from it. Now imagine the state takes over and only pays you a fraction of your deposits.
Worse yet, it incentivizes the shareholders to try to keep things hidden where today they would likely sue the company or CEO.
- The shareholders shouldn't necessarily be held responsible because most have no input or knowledge when it comes to any shady business.
- The company would perform worse because without the drive for profit (and whatever gray means they use to achieve them) that most private entrepreneurs have, the company would almost definitely perform worse. Privatized companies usually run better because the state might be a good minority shareholder but not the best when it comes to driving a company.
