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HomeAI News & UpdatesElon Musk Wants 25% Shares Before Taking Tesla At AI Road

Elon Musk Wants 25% Shares Before Taking Tesla At AI Road

The CEO of Tesla, Elon Musk, said that he would be “uncomfortable” growing the company into an AI and robotics powerhouse without at least 25% voting control—nearly twice his current holding.

Musk stated on Monday on X, the social networking site formerly known as Twitter, that he would like to work on products outside of Tesla unless he could get a stake in the world’s most valuable automaker that would give him “enough to be influential, but not so much that I can’t be overturned.”

According to governance experts and analysts, Musk’s threat to develop AI and robotics outside of Tesla, unless he gains more voting control, could violate his responsibilities as CEO.

Although he has consistently advocated for Tesla’s prototype humanoid robots and its semi-automated “Full Self-Driving” software, the electric vehicle manufacturer’s primary source of revenue remains its automotive division.

Adam Jonas, an analyst at Morgan Stanley, predicted in September that the Dojo supercomputer, used by Tesla to train AI models, could add about $600 billion to the company’s market value by speeding up its foray into software services and autonomous vehicles.  He also advocated for this technology.

Since the beginning of the month, Tesla’s stock has declined by more than 11%. On Tuesday, the stock rose 0.5%. Elon Musk, the wealthiest individual in the world, presently possesses approximately 13% of Tesla stock. To help pay for his $44 billion purchase of Twitter in 2022, this sum was decreased by billions of dollars.

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In a separate X post, he stated that he would be content with a dual-class share structure to obtain 25% voting control, but following Tesla’s initial public offering he was informed that this was impossible.

He remarked, alluding to Facebook founder Mark Zuckerberg, “It’s weird that a crazy multi-class share structure like Meta has, which gives the next 20+ generations of Zuckerbergs control, is fine pre-IPO, but even a reasonable dual-class is not allowed post-IPO,”

A company with a dual-class structure will issue at least two different kinds of shares, each with its own set of voting privileges. More voting power is usually given to founder or early-stage investors and less to other shareholders.

A lawsuit has been filed against Musk regarding his compensation package. In 2018, Tesla shareholder Richard Tornetta initiated legal proceedings against Musk and the board, alleging that the co-founder exploited his authority over the board to secure an excessive compensation package, without being obligated to put in full-time effort at the electric vehicle manufacturer.

On X, Musk denied a “feud” between the board and himself over his new pay package, claiming that talks had stalled due to the impending verdict.

 

 

Editorial Staff
Editorial Staff
Editorial Staff at AI Surge is a dedicated team of experts led by Paul Robins, boasting a combined experience of over 7 years in Computer Science, AI, emerging technologies, and online publishing. Our commitment is to bring you authoritative insights into the forefront of artificial intelligence.
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