1. Home
  2. / AI
  3. / Elon Musk seeks more control at Tesla and threatens to withdraw AI and robotics if he doesn't get 25% of the company. This move could redefine Tesla's future. Full details ahead of the June 13 vote
reading time 3 min read Comments 0 comments

Elon Musk seeks more control at Tesla and threatens to withdraw AI and robotics if he doesn't get 25% of the company. This move could redefine Tesla's future. Full details ahead of the June 13 vote

Written by Noel Budeguer
Published 24/05/2024 às 11:51
Elon Musk - Tesla - electric cars - AI - robots

Elon Musk threatens to spin off Tesla if he doesn't get 25% of the company. Without AI and robotics, Tesla would lose value. Find out how this will impact Tesla's future before the June 13 vote.

Elon Musk has been threatening to break up Tesla for some time now. The mass layoffs, and then readmission of part of the team, and its investment in autonomous driving robotaxis are some of the most recent examples. Many saw in these actions a threat to get 25% of voting rights in Tesla.

Recently, in a post on X (formerly Twitter), he confirmed what could be seen as a threat to Tesla shareholders: give me 25% of the company or there will be no Artificial Intelligence and robotics products in the company.

Without Artificial Intelligence and robotics, Tesla is worthless

He recalled that, in his eyes, the company will be worthless without these two business areas. Artificial Intelligence is, for example, essential for level 4 and 5 autonomous driving in cars. Despite the fact that Tesla's Autopilot FSD (level 2 autonomous driving similar to what almost all manufacturers propose) is considered by the US road safety agency, the NHTSA, to be a very imperfect system that has already caused fatal accidents. Either way, this ultimatum could have huge implications for Tesla's future.

According to the latest official filing with the US Securities and Exchange Commission from 2023, Elon Musk owned 13% of the voting rights in Tesla and about 23% of the shares. Its stake in the company has been decreasing compared to its beginnings due to the purchase of Twitter. In 2022, he sold Tesla shares worth 23 billion dollars.

For Musk to gain 25% voting control, he would need to receive a package of shares worth around $60 billion. Source: Electrek

Elon Musk's ultimatum

For Musk to obtain 25% of voting control, he would need to receive a package of shares worth around 60 billion dollars, according to Electrek.

Musk assures that he doesn't want more money, just voting rights, but dual class voting shares are not really possible since the company is already listed on the stock exchange. One of the ways for Musk to achieve greater control is for the shareholder board to approve his “compensation package”, that is, his salary, agreed in 2018 and valued at 46 billion dollars.

Elon Musk's ultimatum put Tesla in a crossroads. Voting on these proposals will take place before Tesla's annual general meeting of shareholders, which will be held on June 13. The outcome of this meeting will have a significant impact on Tesla's strategic direction and Musk's leadership at the helm of the company.

Register
Notify
guest
0 Comments
Feedbacks
View all comments
Noel Budeguer

Of Argentine nationality, I am a news writer and specialist in the field. I cover topics such as science, oil, gas, technology, the automotive industry, renewable energy and all trends in the job market.

Share across apps
0
We would love your opinion on this subject, comment!x
()
x