{"id":409878,"date":"2024-01-16T10:43:00","date_gmt":"2024-01-16T10:43:00","guid":{"rendered":"https:\/\/haftavasool.com\/haftavasool\/blog\/2024\/01\/16\/im-uncomfortable-elon-musk-on-why-he-wants-greater-control-of-tesla\/"},"modified":"2024-01-16T10:43:00","modified_gmt":"2024-01-16T10:43:00","slug":"im-uncomfortable-elon-musk-on-why-he-wants-greater-control-of-tesla","status":"publish","type":"post","link":"https:\/\/haftavasool.com\/haftavasool\/blog\/2024\/01\/16\/im-uncomfortable-elon-musk-on-why-he-wants-greater-control-of-tesla\/","title":{"rendered":"“I’m Uncomfortable…”: Elon Musk On Why He Wants Greater Control of Tesla"},"content":{"rendered":"

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Musk argued in a post on X that the car company is a collection of a dozen startups (File)<\/p>\n<\/div>\n

Washington: <\/b><\/p>\n

Elon Musk warned he would rather build AI products outside of Tesla Inc. if he doesn’t achieve 25% voting control, suggesting the billionaire wants a bigger stake in the world’s most valuable electric vehicle maker.<\/p>\n

Musk, Tesla’s single largest shareholder with more than 12% of the company, was responding to a social media post questioning why he would need another large compensation package to stay motivated.\u00a0<\/p>\n

He said the reason no new plan has been put in place is because the company is still awaiting a verdict in a shareholder suit against an earlier $55 billion package – an unprecedented amount at the time.<\/p>\n

Musk argued in a post on X that the car company is a collection of a dozen startups.\u00a0<\/p>\n

He called for a comparison between Tesla and General Motors Corp., traditionally one of the auto industry’s global leaders.\u00a0<\/p>\n

Tesla, for example, is developing the Optimus robot, and last month posted a video showing improvements it’s made to the humanoid prototype.\u00a0<\/p>\n

The automaker is also investing more than $1 billion into its Dojo supercomputer project, which will train the machine-learning models behind the EV maker’s self-driving systems and which analysts have estimated could add $500 billion to Tesla’s value.<\/p>\n

At Tesla’s inaugural AI Day in 2021, Musk said he wanted to show that the company is more than just an electric carmaker, but is “arguably the leader in real-world AI.”<\/p>\n

“I am uncomfortable growing Tesla to be a leader in AI & robotics without having 25% voting control,” the CEO posted on X. “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.”<\/p>\n

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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.<\/p>\n

Unless that is the case, I would prefer to build products outside of Tesla. You don’t seem to understand\u2026<\/p>\n

\u2014 Elon Musk (@elonmusk) January 15, 2024<\/a><\/p><\/blockquote>\n

Musk said he would be fine with a dual-class voting structure to allow this, “but am told it is impossible to achieve post-IPO in Delaware.”<\/p>\n

After more than doubling in 2023, Tesla shares have fallen 12% this year, wiping out more than $94 billion in market value.\u00a0<\/p>\n

The world’s richest person is grappling with shareholder dissatisfaction over a panoply of issues, from Tesla’s succession planning to accusations that he’s distracted by his work with X, the platform formerly known as Twitter that he bought for $44 billion in 2022 and sold billions of dollars in Tesla stock to fund.<\/p>\n

The company has also been hit by a barrage of negative news: an about-face on EVs from car rental giant Hertz Global Holdings Inc., another price cut in China, and signs of rising labor costs.<\/p>\n

“What is Tesla? A car, energy, or AI company,” Daniel Kollar, head of consultancy Intralink’s automotive and mobility practice, said. “If it’s not an AI company, then I don’t see an issue establishing a new company. That said, I don’t see his behavior or choice of language benefiting any of his companies now.”<\/p>\n

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)<\/i><\/p>\n<\/div>\n