Elon Musk, the renowned entrepreneur, has expressed his desire for greater voting control in Tesla Inc., stating that he would consider building AI products outside of the company if his goal of achieving 25% voting control is not realized. As Tesla’s largest shareholder with over 12% ownership, Musk’s remarks highlight his ambition to have a more significant stake in the world’s most valuable electric vehicle manufacturer.
Musk’s statement came in response to inquiries regarding his need for an additional compensation package to maintain his motivation. He explained that the absence of a new plan is due to an ongoing shareholder lawsuit challenging a previous $55 billion compensation package, which was an unprecedented amount at the time.
In a post on X, Musk emphasized that Tesla is not merely an electric car company but rather a collection of startups. He also drew a comparison between Tesla and General Motors Corp., a prominent player in the traditional automobile industry. Musk pointed out that Tesla is actively involved in AI development, exemplified by its Optimus robot and recent advancements in humanoid prototypes showcased in a video. Additionally, the company is investing more than $1 billion into the Dojo supercomputer project, which is expected to significantly enhance Tesla’s self-driving systems.
During Tesla’s recent AI Day, Musk reiterated his intention to establish Tesla as a frontrunner in real-world AI, asserting, “I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control.” Musk explained that having 25% voting control would provide him with influence, while still allowing for the possibility of being overridden by a majority vote against his decisions. With a 15% or lower voting control, Musk raised concerns about the ease of a potential takeover by parties with questionable intentions.
While Musk expressed his willingness to accept a dual-class voting structure to achieve his objectives, he mentioned that such a structure is deemed unattainable post-IPO in Delaware.
Recent market fluctuations have impacted Tesla’s stock performance, resulting in a 12% decline and over $94 billion in lost market value this year. Musk is also contending with shareholder discontent, ranging from concerns about Tesla’s succession planning to allegations that he is being excessively occupied by his work with X, the platform previously known as Twitter, for which he acquired for $44 billion in 2022 and sold billions of dollars in Tesla stock to fund.
The challenges faced by Tesla include various negative developments, including a reversal in EV support from Hertz Global Holdings Inc., a price reduction in China, and indications of rising labor costs. Observers have questioned Tesla’s identity, with some pondering whether it is primarily an AI company. Daniel Kollar, the head of Intralink’s automotive and mobility practice, commented, “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.”
In conclusion, Musk’s desire for increased voting control reflects his aspirations to solidify Tesla’s position in the AI industry. While he continues to face challenges, his commitment to pushing the boundaries of innovation remains unwavering.
The source of the article is from the blog radardovalemg.com