Tesla’s CEO, Elon Musk, has voiced his unease with the current level of voting share he holds in the company, indicating a potential shift in the dynamics of his role in steering Tesla towards advancements in artificial intelligence (AI) and robotics.
Musk’s comments suggest his readiness for a revised compensation package, and he has hinted that without an increased voting share, he may explore the development of significant technologies outside the confines of Tesla. This comes amid ongoing discussions about Musk’s existing compensation arrangement with the electric vehicle giant.
While acknowledging Musk’s pivotal role in Tesla’s market capitalization and influence, the situation has become more intricate with the notable reduction in his ownership share. Musk divested billions in Tesla stock to facilitate his acquisition of Twitter, contributing to a substantial decrease in his ownership stake. Nevertheless, Tesla has continued its progressive trajectory under Musk’s leadership, prompting his pursuit of more influence over the company’s direction.
“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,” Musk articulated on X, the social network he owns. “Unless that is the case, I would prefer to build products outside of Tesla. You don’t seem to understand that Tesla is not one startup, but a dozen. Simply look at the delta between what Tesla does and GM.”
Presently holding between a 12 and 13 percent ownership stake, Musk expressed concerns about the motivating power of stock ownership alone, highlighting that other major stakeholders, like Fidelity, own comparable stakes without actively participating in the company’s operations.
The sentiment among Tesla enthusiasts and Musk’s followers on X appears largely supportive of Musk gaining more control, with a prevailing belief that his continued influence is integral to the company’s forward momentum. However, there is some conflict among followers, with one expressing reservations about Musk’s past stock sell-off and its impact on Tesla investors.
This development introduces a polarizing element to Musk’s public statements on X, potentially heralding significant changes ahead. To retain Musk’s commitment, Tesla’s Board of Directors may need to consider elevating his ownership stake and offering additional performance-based incentives. It’s worth noting that Musk’s existing $56 billion compensation package is currently under scrutiny by the Delaware Chancery Court, as it undergoes examination for its fairness to shareholders.
