“Elon Musk Expresses Discomfort and Desire for Greater Control in Tesla Amid AI and Shareholder Concerns”
In a recent series of social media posts, Tesla CEO Elon Musk has revealed his discomfort and the need for increased control within the company, signaling a desire for a larger stake in the world’s leading electric vehicle (EV) manufacturer. Musk, who currently holds more than 12% of Tesla, emphasized the importance of achieving 25% voting control and warned that he might explore building artificial intelligence (AI) products outside of Tesla if this objective isn’t met.
In a recent series of social media posts, Tesla CEO Elon Musk has revealed his discomfort and the need for increased control within the company, signaling a desire for a larger stake in the world’s leading electric vehicle (EV) manufacturer. Musk, who currently holds more than 12% of Tesla, emphasized the importance of achieving 25% voting control and warned that he might explore building artificial intelligence (AI) products outside of Tesla if this objective isn’t met.
Responding to queries about his motivation for potentially receiving another large compensation package, Musk explained that the absence of a new plan is due to an ongoing legal battle involving a previous $55 billion package, a record-breaking amount at the time. Musk conveyed his vision of Tesla as a collection of startups, emphasizing its expansion into various sectors, including AI and robotics.
Musk called for a comparison between Tesla and General Motors Corp., highlighting Tesla’s ventures into AI and robotics. The company’s recent developments include the Optimus robot and substantial investments in the Dojo supercomputer project, aimed at enhancing the machine-learning models behind Tesla’s self-driving systems.
Expressing discomfort about growing Tesla’s role in AI and robotics without sufficient voting control, Musk stated, “If I have 25%, it means I am influential but can be overridden if twice as many shareholders vote against me versus for me.” He suggested a willingness to adopt a dual-class voting structure but claimed it to be challenging to achieve post-initial public offering (IPO) in Delaware.
Despite Tesla’s impressive performance in 2023, with shares more than doubling, 2024 has seen a 12% decline, erasing over $94 billion in market value. Musk is grappling with shareholder dissatisfaction on various fronts, from succession planning to accusations of distraction due to his involvement with X, the platform formerly known as Twitter.
The recent challenges faced by Tesla include setbacks in China, negative news concerning EVs from Hertz Global Holdings Inc., and signs of rising labor costs. The uncertainty surrounding Tesla’s identity—whether it is primarily a car, energy, or AI company—has led to speculation within the industry about Musk’s intentions and the potential establishment of a new company.
Daniel Kollar, head of consultancy Intralink’s automotive and mobility practice, commented on Musk’s recent developments, stating, “If it’s not an AI company, then I don’t see an issue establishing a new company. That said, I don’t see his behavior or choice of language benefiting any of his companies now.”
As the situation unfolds, industry observers are keen to see how Musk’s quest for greater control and Tesla’s foray into AI and robotics will impact the company’s trajectory in the rapidly evolving automotive and technology landscape.
Sources By Agencies
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