Elon Musk has expressed that he would prefer to develop AI products outside of Tesla Inc if he cannot maintain at least 25% voting control. This suggests that the billionaire may desire a larger stake in the world’s most valuable electric vehicle maker.
The CEO of Tesla, who currently holds over 12% of the company, argued in a post on X that the car company is essentially a collection of several startups. He also called for a comparison between Tesla and General Motors Corp, a traditional global leader in the auto industry.
For instance, Tesla is working on the Optimus robot and recently showcased improvements made to the humanoid prototype. Additionally, the automaker is investing over US$1bil (RM4.6bil) into its Dojo supercomputer project, which will train the machine-learning models behind the EV maker’s self-driving systems. Analysts have estimated that this could add US$500bil to Tesla’s value.
At Tesla’s inaugural AI Day in 2021, Musk stated that he wanted to demonstrate that the company is more than just an electric car maker, asserting that it is “arguably the leader in real-world AI”.
Musk, as Tesla’s single largest shareholder, responded to a post questioning why he would need an additional large compensation package to stay motivated.
“I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control,” the CEO stated in his post on X. “If I have 25%, it means I am influential, but can be overridden if twice as many shareholders vote against me vs for me. At 15% or lower, the for/against ratio to override me makes a takeover by dubious interests too easy.”
Musk mentioned that he would be open to a dual-class voting structure to enable this, “but am told it is impossible to achieve post-IPO in Delaware.”
He also stated that the reason no new compensation plan has been established is due to the company awaiting a verdict in a shareholder suit against an earlier US$55bil package.
After doubling in 2023, Tesla shares have decreased by 12% this year, resulting in a loss of over US$94bil in market valuation.
The world’s richest person is dealing with shareholder dissatisfaction over numerous issues, from Tesla’s succession planning to allegations that he’s distracted by his work with X, the platform he took over in 2022.
The company has also been impacted by a series of negative news, including a shift on EVs by car rental giant Hertz Global Holdings Inc, another price reduction in China, and indications of rising labor costs. – Bloomberg
