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Elon Musk, CEO of Tesla, has expressed discomfort with growing Tesla into a leader in artificial intelligence (AI) and robotics without securing at least 25% voting control of the company.
Musk mentioned on X (formerly Twitter) that he would prefer stock in Tesla “enough to be influential, but not so much that I can’t be overturned.” This statement indicates his desire to balance influence with governance mechanisms.
Musk’s Preference for Dual-Class Share Structure:
Musk suggested he would be open to a dual-class share structure to achieve the 25% voting control goal. However, he noted that such a structure was impossible after Tesla’s initial public offering (IPO).
Musk cited the example of Meta (formerly Facebook), highlighting the acceptability of multi-class share structures pre-IPO and contrasting it with the post-IPO challenges.
Tesla’s Current State and Musk’s Stance:
Currently owning around 13% of Tesla stock, Musk has been vocal about Tesla’s advancements in AI, particularly its partially automated “Full Self-Driving” software and humanoid robots.
However, he emphasized the need for increased voting control to lead Tesla’s expansion into AI and robotics, as the company predominantly generates revenue from its automotive business.
Lawsuit Over Compensation Package and Musk’s Response:
Musk is currently facing a lawsuit over his compensation package, with allegations that he used his dominance over Tesla’s board to secure an outsized compensation package.
Musk clarified on X that there is no “feud” with the board over his new compensation package and suggested that the pending verdict impedes discussions.
