Elon Musk has issued an ultimatum to Tesla shareholders, demanding 25 percent control of the company in exchange for the continued development of AI and robotics products. Musk currently owns 13 percent of the struggling EV giant.
Electrek reports that Elon Musk, known for his bold statements and unconventional leadership style, has recently made waves by suggesting that he is “uncomfortable” developing AI and robotic products at Tesla unless he has a 25 percent stake in the company. This revelation has raised concerns among Tesla shareholders and industry observers alike.
Tesla CEO Elon Musk unveils the new Tesla factory in Fremont, Calif. (AP Photo/Paul Sakuma)
California Tesla Crash (Contra Costa County Fire Protection District via AP)
Over the years, Musk has repeatedly emphasized the importance of AI and robotics for Tesla’s future, even going as far as saying that the company is virtually worthless without self-driving technology, its primary AI product. However, his recent actions, such as canceling a cheaper Tesla vehicle in favor of supposed Robotaxis, have led many to question his commitment to the company’s long-term goals.
Currently, Musk owns approximately 13 percent of Tesla’s shares, and even if his 2018 compensation package goes through, he will only hold around 18 percent of the company, assuming he sells some shares to cover taxes. To reach the desired 25 percent control, Musk would either need another substantial compensation package or a new share class at Tesla, both of which could potentially dilute the value of existing shares.
In a recent post on X/Twitter, Musk appeared to confirm his stance by approving a message from the Teslaconomics account that stated, “If Elon gets 25 percent voting power, Tesla is reincorporated in Texas, and compensation package is approved, then AI & Robotics stays within Tesla and the company can march on forward to become the largest company in the world.” This statement has led many to believe that Musk is essentially threatening to divert AI and robotics products away from Tesla if his conditions are not met.
The three conditions outlined in the post are: obtaining 25 percent voting power over Tesla, reincorporating the company in Texas, and reapproving his 2018 compensation package. These demands have raised eyebrows among investors and industry experts, who are now questioning Musk’s priorities and the potential impact on Tesla’s future.
Electrek’s Fred Lambert, a long-time observer of Tesla and Musk, had sharp words for the EV company’s leader:
The guy would already have about 25% of the company with his 2018 compensation package and if he didn’t sell stocks to buy Twitter. You can’t have your cake and eat it too.
Speaking of the 2018 compensation package, the reason it was rescinded was because a judge found that Elon had too much undue influence on the board. The board is now proving the judge’s point, as they are not doing anything about the CEO making this threat. It’s ridiculous.
Read more at Electrek here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
