Elon Musk is seeking to increase his control over Tesla, the electric vehicle (EV) manufacturer that has made him a multi-billionaire, in order to further its position as a leader in artificial intelligence (AI) and robotics technology.
The outspoken CEO and co-founder of Tesla took to X (formerly Twitter), the social-media platform he owns, to express his concerns about the company’s development of these technologies without having a greater financial stake and voting control with Tesla’s board.
Currently, Musk holds a 13% share in the company, which has an overall market cap of $764.37 billion.
“I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control,” Musk stated on X. This share is “enough to be influential, but not so much that I can’t be overturned,” which means others could veto any of his technology decisions.
Musk even hinted that he might take Tesla’s AI and robotics development elsewhere if he doesn’t get his way.
“Unless that is the case, I would prefer to build products outside of Tesla,” he said on X. “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.”
Musk also seemed to suggest that other shareholders with similar stakes in Tesla, such as Fidelity, don’t pull the same weight that he does as its CEO. “Why don’t they show up for work?” he said.
Comments spark more controversy
Tesla did not immediately reply to a request for comment. The company’s leader is certainly no stranger to controversy — in fact many industry watchers argue Musk relishes it. The comments — perceived by some as a power and money grab that threatens Tesla’s business by taking technology innovation outside the company — spurred even more.
“Let me get this straight…, Elon wants another 450M new shares ($100B) or conversion of existing shares into super-voting status, or he will ‘prefer to build products outside of Tesla?!’ Jim Chanos said in a post on X, the president and founder of investment firm Kynikos Associates best known for predicting the fall of Enron. “I know this is Elon, but you do realize how outrageous this is, right?”
Others called Musk’s comments an attack on Tesla’s board of directors, who he was quick to call “great” and “excellent” in follow-up messages.
Still others supported the idea based on Musk’s ongoing work at the company and for the good of growing the business.
“Elon has earned all of his existing shares,” Tesla investor and retired software engineer Jason DeBolt said on X. “Let’s give him a path to earn more (25% voting control) and take Tesla to the next level. He’s working harder than any of us retail investors and institutional investors…waiting for stuff to just magically happen.”
Musk seemed to suggest his interest in having more control at Tesla is not about him becoming richer, but “about ensuring the right amount of voting influence at Tesla.
“If I have…
2024-01-20 16:00:03
Link from www.computerworld.com