An article from Yahoo Finance reveals that Tesla CEO Elon Musk has expressed his discomfort with the current level of control he holds over the company, stating that he needs to secure a greater percentage of voting control in order to effectively lead the company’s wide-ranging AI aspirations. Musk stated that having approximately 25% voting control would allow him to be influential, but not to the extent that he couldn’t be overturned. If this level of control cannot be attained, Musk expressed his preference for building AI products outside of Tesla.
Musk also raised the question of why large asset custodians such as Fidelity and BlackRock, who own similar stakes in Tesla, do not contribute directly to the company’s AI endeavors. This comparison may be seen as odd, but it underscores the urgent need for Tesla to fully embrace its ambitious AI goals.
Tesla’s AI ambitions include the utilization of its Dojo supercomputer to train the AI model that powers its Full Self-Driving (FSD) software, among other initiatives. Analysts have noted that Tesla’s foray into AI and supercomputer products could be a potential revenue generator similar to Amazon’s AWS cloud services.
Musk’s desire for increased control comes at a time when Tesla’s stock has experienced significant losses in market capitalization. Some investors have expressed concern over Musk’s request for more shares and its potential impact on the company’s direction. However, Wedbush analyst Dan Ives believes that all AI initiatives should remain within Tesla for it to maintain its position as a disruptive tech leader.
The negative public perception of a CEO demanding more control and potentially more compensation has also raised eyebrows. While Musk has suggested being open to a dual class voting structure for increased control, he acknowledges the restrictions imposed by Delaware corporate law which governs Tesla.
Despite some skepticism from Wall Street figures, it is likely that the drama surrounding Musk’s request for increased control will eventually subside. However, the need for Tesla to navigate the delicate balance between innovation, governance, and shareholder interests remains a critical challenge for Musk and the company.
The source of the article is from the blog rugbynews.at