Musk: Give me 25% of Tesla, otherwise divest artificial intelligence and robotics

Bullwhip

2024-05-21 06:02Posted on the official account of Anhui Whip Bull

Whip Bull reported that on May 21, according to foreign news reports, a recent post by Tesla CEO Elon Musk seems to have sparked another round of controversy.

The tech billionaire appears to have reiterated his demand that shareholders give him 25% ownership of Tesla, or he will stop developing AI and robotics products for the company.

According to Electrek, the whole thing started with Musk's repeated claims that Tesla is more than just a car company; It is a leader in artificial intelligence and robotics.

In recent years, Musk's belief in this vision has become stronger, and Tesla's self-driving technology has been hailed as its most valuable product. However, Musk's latest request calls into question the company's future direction.

In a recent X post, Musk appears to have reinforced his previous rhetoric, agreeing to three conditions to stop him from moving AI and robotics projects out of Tesla's hands:

25% Voting Power: Musk is determined to gain significant control of Tesla, with the X post saying, "If Elon gets 25% of the voting rights...... Artificial intelligence and robotics will remain within Tesla."

Re-registration in Texas: In addition to voting rights, Musk also confirmed Tesla's requirement to re-register in Texas, which could mark a strategic shift in the company's operations.

Compensation package: Musk sought solace by reapproving the 2018 compensation package. Currently, Musk holds about 13% of Tesla's shares. If his 2018 compensation package is approved, his approval rating will be close to 18%.

Musk's proposal comes at a critical time for Tesla, whose stock is facing serious turmoil.

In addition, Tesla's current profit is down 55% due to increased competition, and its price-cutting strategy has finally caught up with the EV maker.

The CEO elaborated on his requirements during Tesla's earnings call in January 2024. Musk expressed concern about losing control of Tesla's AI program and expressed concern about being expelled by shareholder consulting firms.

He stressed that he wants to have influential control without full ownership, with the goal of having strong influence, but not control.

However, the feasibility of Musk's request remains the subject of intense speculation. In order to gain 25% control of the vote, Musk would need to acquire about $60 billion worth of shares, a staggering figure even for one of the richest people in the world.

In addition, the complexity of implementing such changes after an IPO presents additional challenges. Tesla's stock price fell 10% after its earnings report in January.

Tesla recently revealed to owners and potential buyers that its newly shipped Model S and Model X vehicles will stop supporting the popular gaming platform Steam.

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