Tesla CEO Elon Musk has a fireside discussion with British Prime Minister Rishi Sunak (not pictured) about the risks of artificial intelligence on Thursday, November 2, 2023 in London, England.
Tolga Akmen | Bloomberg | Getty Images
Elon Musk, the CEO of Tesla and SpaceX, who also owns social network
Musk already owns about 13% of the stock. teslarepresenting approximately 411 million of the 3.19 billion common shares outstanding as reported in the company’s last financial report for the third quarter of 2023.
That’s a lot, especially considering Musk sold tens of billions of dollars worth of Tesla stock in 2022, primarily to finance a $44 billion leveraged buyout of Twitter.
Now, Mr. Musk is seeking even more control over Tesla.
in particular, Musk wrote on Monday.“I don’t feel comfortable building Tesla into a leader in AI and robotics without having up to 25% voting power. Enough to have influence, but not so much that it can’t be overturned.”
“Unless otherwise, I would like to develop products outside of Tesla,” the billionaire executive told X.
“You don’t seem to understand that Tesla is not one startup, it’s a dozen startups. Simply look at the difference between Tesla’s operations and operations. GM. Fidelity and other companies own similar stocks to mine, as far as owning stock is enough of an incentive. why don’t they come to work? ”
Tesla did not immediately respond to a request for comment.
Musk’s post contradicted his previous statements suggesting that Tesla is already an important artificial intelligence and robotics company and that its value depends on its ability to excel in these areas.
In April 2022, Musk said at Tesla’s first-quarter earnings conference that the company’s humanoid robot Optimus “ultimately will be worth more than the car business, and more than fully autonomous driving.” That’s what I expected.
Tesla unveiled an early Optimus prototype at Tesla AI Day in September of the same year, and Musk wrote in a post before and after the event that “AI Day is all about Tesla’s immense power in AI, computing hardware, and robotics.” It’s about showing depth and breadth.”
Most recently, on Dec. 27, 2023, Musk criticized Craig Irwin, a senior research analyst at Roth Capital, on CNBC’s “Closing Bell Overtime,” in which he criticized Tesla, especially compared to the Japanese auto giant. said he thought it was “grossly overrated.” Toyota.
Musk said he was furious at the comparison to a major competitor, which sells more hybrid electric vehicles than battery electric vehicles. In the post of X“He’s wrong. Tesla is an AI/robot company.”
Tesla’s last annual or 10-K filing The company, which indicated that approximately 95% of its 2022 sales will come from its “Automotive” division, said in its third-quarter 2023 financial report that its business is “products based on artificial intelligence, robotics, and automation.” “We are increasingly focusing on service and service.”
On Monday morning, Musk also posted a video clip to X showing an Optimus robot under development folding laundry at a table, even though it was being controlled remotely. and not autonomous.
Mr. Musk’s desire to further control Tesla will undoubtedly increase pressure on Tesla’s board in 2024.
In addition to determining appropriate CEO and director compensation, Tesla’s board is already facing concerns from some investors about several issues.
Some investors and lawmakers have expressed concerns about: Musk’s split of focus and use of company resources as he continues to run SpaceX, X Corporation and other ventures alongside Tesla. polarizing his political and cultural opinions, including recent tweets that downplayed companies’ diversity and inclusion efforts; Federal investigation involving Musk and Tesla.Recently reported concerns about CEO drug use Written by Wall Street Journal.
Musk is also in the middle of a lawsuit in Delaware over a previous $56 billion compensation package from Tesla. His unprecedented 2018 CEO compensation plan made Mr. Musk one of the richest people on the planet.
Shareholder Richard J. Tornetta sued Musk and the company, alleging that the CEO’s compensation was excessive and that the approval amounted to a breach of fiduciary duty by Tesla and its board of directors.
Musk also noted Monday that Tesla’s board is waiting to develop a new compensation plan for him until the Tornetta case is decided in Delaware Chancery Court.
“The reason I don’t have a new ‘compensation plan’ is because I’m still waiting on the verdict in my compensation case in Delaware. That trial was held in 2022, but the verdict is still out. I have not done so.”
Referring to his insistence on voting for 25%, he said: “If I have 25%, that means I have influence, but if twice as many shareholders vote in favor… “If you vote against me, it could be invalidated. If it’s less than 15%, the opinion of those in favor could be invalidated.” Ignore me/versus ratio makes takeover by dubious interests too easy. ”
In an earlier case in Delaware, several Tesla directors agreed last year to repay the company $735 million in a settlement over their directors’ compensation.
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