Elon Musk, CEO of Tesla, during a sidebar discussion about the risks of artificial intelligence with Rishi Sunak, Prime Minister of the United Kingdom, in London, United Kingdom, on Thursday, November 2, 2023.
Tolga Akmen | Bloomberg | Getty Images
That’s a big stake, especially considering Musk sold tens of billions of dollars worth of his Tesla stock in 2022, largely to fund Twitter’s $44 billion purchase.
Now, Musk is seeking more control over Tesla.
especially, Musk wrote on Monday“I’m uncomfortable with Tesla growing into a leader in AI and robotics without roughly 25% voting control. Enough to be influential, but not so much that I can’t be brought down.”
“Unless that’s the case, I’d rather build products outside of Tesla,” the billionaire CEO said on X.
“You don’t seem to understand that Tesla is not one startup, but dozens of companies. Just look at the difference between what Tesla and General Motors are doing. In terms of stock ownership in itself being a sufficient incentive, Fidelity and other companies “The same class has the same quotas as me. Why don’t they come to work?”
Tesla did not immediately respond to a request for comment.
Musk’s post contradicted remarks he had previously made suggesting that Tesla is already an important company in artificial intelligence and robotics, and its value hinges on its prowess in these areas.
In April 2022, Musk predicted during Tesla’s first-quarter earnings call that the company’s automated robot, Optimus, “will ultimately be more valuable than auto trading and worth more than full self-driving.”
Tesla unveiled an early prototype of Optimus at Tesla AI Day in September of that year, and Musk said in a post about the event: “The goal of AI Day is to showcase the tremendous depth and breadth of Tesla’s expertise in AI, computing devices, and robotics.”
Most recently, on December 27, 2023, Musk criticized Roth Capital senior research analyst Craig Irwin, who appeared on CNBC’s Closing Bell Overtime, saying he believes Tesla is “grossly overvalued,” especially by comparison. With the Japanese automobile giant Toyota.
Musk said he was troubled by the comparison with a major competitor that has sold more hybrid electric vehicles than battery electric models In a post on X“He has the wrong frame of reference. Tesla is an AI/robotics company.”
While Tesla’s last annual report, or 10K, showed that about 95% of its revenue came from the “automotive” sector in 2022, in its financial filing for the third quarter of 2023, the company described its business as “increasingly focused on automotive-based products and services.” Artificial intelligence, robotics and automation.”
As of Monday morning, Musk posted a video on X showing the Optimus robot being developed to fold laundry on a table, although the robot was operated remotely. And not independent.
There is no doubt that Musk’s desire to control more of Tesla will add to the pressure on Tesla’s board of directors in 2024.
In addition to determining appropriate CEO and director compensation, Tesla’s board is already facing some investor concerns over several issues.
Some investors and lawmakers have expressed concerns about: Musk’s divided focus and use of company resources as he continues to run SpaceX and X Corp. and other projects alongside Tesla; his divisive political and cultural commentary, including his recent tweets disparaging institutional diversity and inclusion initiatives; Federal investigations into Musk and Tesla; And concerns about the CEO’s drug use, as the Wall Street Journal recently reported.
Musk is also in the midst of a trial in Delaware over his previous $56 billion pay package from Tesla. The unparalleled 2018 CEO compensation plan made Musk one of the richest people on the planet.
Shareholder Richard J. Tornetta filed a lawsuit against Musk and Tesla, alleging that the CEO’s compensation was excessive and that his delegation amounted to a breach of fiduciary duty by Tesla and its board of directors.
Musk also indicated on Monday that Tesla’s board of directors is waiting to develop a new compensation plan for him until Tornita’s case is decided in Delaware state court.
“The reason there is no new ‘compensation plan’ is because we are still awaiting a decision in my compensation case in Delaware. The trial is set for 2022, but no ruling yet,” he wrote.
Referring to his call for 25% voting control, he said: “If I have 25%, that means I am influential, but it can be overridden if twice as many shareholders vote against me as for me. At 15% or less, the percentage voting in favor of me is 15% or less. / Against the ratio of my transgression makes the seizure of questionable interests too easy.
In a previous trial in Delaware, several Tesla board members agreed last year to pay the company $735 million in a settlement agreement regarding compensation for their directors.