On Thursday, November 2, 2023, Tesla CEO Elon Musk held a fireside discussion with British Prime Minister Rishi Sunak (not pictured) on the risks of artificial intelligence in London, England.
Tolga Ackerman | Bloomberg | Getty Images
Tesla and SpaceX CEO Elon Musk said on Monday he wants to gain voting control of about 25% of their electric vehicle businesses. Musk also owns social network X (formerly Twitter).
Musk already owns about 13% of the shares Teslaor approximately 411 million of the company’s 3.19 billion shares of common stock outstanding, as reported in the company’s last report 2023 Third Quarter Financial Report.
That’s a big stake, especially considering that Musk sold tens of billions of dollars’ worth of Tesla stock in 2022, largely to fund Twitter’s $44 billion leveraged buyout.
Now, Musk is seeking more control over Tesla.
Specifically, Musk wrote on Monday“, “Tesla becoming the leader in artificial intelligence and robotics without having ~25% voting control makes me uncomfortable. It was influential enough, but not enough that I couldn’t be overthrown. “
“Unless that’s the case, I’d rather make products outside of Tesla,” the billionaire executive said on X.
“You don’t seem to understand that Tesla is not one startup, but a dozen startups. Just look at the difference between what Tesla is doing and other startups.” General Motors. As for whether the equity itself has enough momentum, Fidelity and other companies have similar holdings to mine. Why don’t they come to work? “
Tesla did not immediately respond to a request for comment.
Musk’s post contradicts his previous remarks, in which he said Tesla was already an important artificial intelligence and robotics company and that its value depended on its strength in those areas.
In April 2022, Musk predicted during Tesla’s first-quarter earnings call that the company’s humanoid robot Optimus “ultimately will be more valuable than the car business and more valuable than fully autonomous driving.”
Tesla launched an early Optimus prototype at Tesla Artificial Intelligence Day in September of that year. Musk said in a post surrounding the event: “The purpose of Artificial Intelligence Day is to showcase Tesla’s capabilities in artificial intelligence, Huge depth and breadth in computing hardware and robotics.”
Most recently, on December 27, 2023, Musk criticized Roth Capital Senior Research Analyst Craig Irwin for appearing on CNBC’s Closing Bell Overtime, saying he believed Tesla was “grossly overvalued,” Especially compared to Japanese auto giants toyota.
Musk said he bristled at comparisons with larger rivals that sell more hybrid electric vehicles than pure electric vehicles In X’s post“, “His frame of reference is wrong. Tesla is an artificial intelligence/robotics company. “
Although Tesla last year or 10-K Filing It shows that about 95% of its revenue in 2022 will come from the “automotive” segment. In its third quarter 2023 financial report, the company described its business as “increasingly focused on products and services based on artificial intelligence, robotics and automation.” Serve”.
Even on Monday morning, Musk posted a video clip on the X showing the Optimus robot in development folding laundry on a table, although the robot was operated remotely and not autonomous.
Musk’s desire to control more Tesla shares will undoubtedly increase the pressure on Tesla’s board of directors in 2024.
In addition to determining appropriate CEO and director compensation, Tesla’s board has faced concerns from some investors about several issues.
Some investors and lawmakers have expressed concerns about Musk’s distraction and use of company resources as he continues to run SpaceX, X Corp. and other ventures with Tesla; his divisive politics and culture Comments, including recent tweets disparaging corporate diversity and inclusion initiatives; federal investigations involving Musk and Tesla; recent reported concerns about CEO drug use wall street journal.
Musk is also on trial in Delaware over a $56 billion salary package he previously received from Tesla. An unparalleled CEO compensation package for 2018 made Musk one of the richest people on the planet.
Shareholder Richard J. Tornetta sued Musk and Tesla, alleging that the CEO’s compensation was excessive and his delegation amounted to a breach of fiduciary duty by Tesla and its board of directors.
Musk also noted on Monday that Tesla’s board of directors was waiting to create a new compensation plan for him until the Delaware Superior Court rules in the Tornetta case.
“The reason there is no new ‘reparations plan’ is that we are still awaiting a decision in my Delaware restitution case. A trial is scheduled for 2022 but a verdict has not yet been reached,” he wrote.
Referring to his demand for 25% voting control, he said: “If I have 25% of the voting rights, it means I am influential, but if twice as many shareholders vote against me as support me, My vote would have been overturned. At 15% or less, my vote could have been overridden.”/The opposition to overriding my ratio makes it too easy for dubious interest groups to take over. “
In an earlier trial in Delaware, several Tesla board members agreed last year to repay the company $735 million for their director compensation in a settlement.
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