Tesla CEO Elon Musk appears to have sparked yet another round of controversy with a recent post.
The tech billionaire seems to have reiterated his demand that shareholders give him 25% ownership of Tesla, or he will stop developing AI and robotic products for the company (via Electrek).
Musk Threatens to Strip Tesla's AI, Robotics Unless He Gains 25% Control
ALAIN JOCARD/AFP via Getty Images
According to Electrek, the whole thing began with Musk's repeated assertions that Tesla is more than just a car company; it is a leader in AI and robotics.
Musk's belief in this vision has grown even stronger in recent years, with Tesla's self-driving technology hailed as its most valuable product. However, Musk's latest demands have questioned the company's future direction.
In a recent post on X, Musk appeared to double down on his previous remarks, agreeing to three conditions that would prevent him from diverting AI and robotics projects away from Tesla:
25% Voting Power: Musk is determined to gain significant control over Tesla, with the X post saying, "If Elon gets 25% voting power... AI & Robotics stays within Tesla."
Reincorporation in Texas: In addition to voting power, Musk confirms his demand for Tesla's reincorporation in Texas, potentially signaling a strategic shift in the company's operations.
Compensation Package: Musk seeks reassurance by reapproving his 2018 compensation package. Currently, Musk holds roughly 13% of Tesla's shares. He will be closer to 18% if his 2018 compensation package gets the go ahead.
Musk's proposition comes at a pivotal moment for Tesla, with the company's stock facing significant turbulence.
Additionally, Tesla's profits are currently down 55% due to more intense competition, and its price-cutting strategy has finally caught up with the EV maker.
Tesla CEO Elon Musk is pictured during a visit at the company's electric car plant in Gruenheide near Berlin, eastern Germany, on March 13, 2024, as employees resumed work after production had to be halted due to a suspected arson attack that caused a power outage.ODD ANDERSEN/AFP via Getty Images
Musk's Demands
The CEO elaborated on his demands during Tesla's earnings conference call in January 2024. Musk expressed concerns about losing control over Tesla's AI initiatives and cited fears of being ousted by shareholder advisory firms.
He emphasized his desire for influential control without full ownership, aiming for "a strong influence but not control."
However, the feasibility of Musk's demands remains a subject of intense speculation. To achieve 25% voting control, Musk would need to receive a stock package worth approximately $60 billion, a staggering figure even for one of the world's wealthiest individuals.
Moreover, the intricacies of implementing such changes post-IPO pose additional challenges. Tesla's stock fell by up to 10% following its earnings announcement in January.
In Other News
Tesla recently disclosed to owners and potential buyers that new shipments of its Model S and Model X vehicles will cease to support Steam, the popular gaming platform.
