Elon Musk looking for 25% voting share at Tesla ahead of AI, robotics growth

Tech billionaire and richest man in the world Elon Musk took to his social media site X (formerly known as Twitter) to express discomfort with his current shareholding in electric car manufacturer . “I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control. Enough to be influential, but not so much that I can’t be overturned.

Unless that is the case, I would prefer to build products outside of Tesla. You don’t seem to understand that Tesla is not one startup, but a dozen. Simply look at the delta between what Tesla does and GM.

As for stock ownership, itself being enough motivation, Fidelity and others own similar stakes to me. Why don’t they show up for work?” he . Also Read | Voicing concern over the need for a minimum 25 percent voting control in the company, said he wants enough stock “to be influential”, but not so much “that I can’t be overturned”.

He also praised the Tesla board adding that his concern was due to the growth of artificial intelligence (AI) and robotics at the company. Musk holds 13 percent of Tesla, and is willing to explore a dual-class voting structure to achieve the desired 25 percent voting control, as per his posts on X. He however said this structure would be a challenge to implement after the initial public offering (IPO) in Delaware.

“I should note that the Tesla board is great. The reason for no new “compensation plan” is that we are still waiting for a decision in my Delaware compensation case. The trial for that was held in 2022, but a verdict has yet to be made.

I put “compensation plan” in quotes, because, from my standpoint, this is primarily about ensuring the right amount of voting influence at Tesla. 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.

I would be fine with a dual-class voting structure to achieve this, but am told it is impossible to achieve post-IPO in Delaware,” he . Also Read | Diversifying Tesla’s Focus Musk highlighted Tesla’s diverse projects, including the development of the Optimus robot and investments exceeding $1 billion in the Dojo supercomputer project. The latter aims to enhance machine-learning models for Tesla’s self-driving systems, potentially adding substantial value to the company.

At Tesla’s AI Day in 2021, Musk underscored the company’s role as a leader in real-world AI, going beyond its identity as an electric car maker. As the single largest shareholder, Musk addressed concerns about his motivation, stating his discomfort in leading AI and robotics without maintaining approximately 25 percent voting control. Tesla Faces Shareholder Discontent After a remarkable doubling in 2023, Tesla shares have declined by 12 percent in the current year, resulting in a loss of over $94 billion in market valuation.

Musk grapples with shareholder dissatisfaction on various fronts, from succession planning to accusations of distraction by his involvement with X, the platform formerly known as Twitter. Also Read | Responding to users on X, Musk also clarified a lawsuit concerning his compensation package. Shareholder Richard Tornetta filed a lawsuit in 2018, alleging that Musk and the board colluded to secure an oversized compensation package without requiring Musk to work full-time at the electric car manufacturer.

The legal proceedings are ongoing. Tesla did not respond to any queries from Reuters or Bloomberg. Livemint tops charts as the fastest growing news website in the world to know more.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away!.