On Monday, Tesla CEO Elon Musk expressed his discomfort with the idea of expanding the automaker’s presence in artificial intelligence and robotics without attaining at least 25% voting control in the company, a figure nearly double his existing stake.
Using the social media platform X (formerly Twitter), Musk conveyed that unless he obtained a significant stock holding in the world’s most valuable automaker, sufficient to wield influence but not to the extent of being irrevocable, he would prefer to direct his efforts toward products outside the realm of the electric vehicle manufacturer.
While Musk has consistently promoted Tesla’s partially automated “Full Self-Driving” software and prototype humanoid robots, it is noteworthy that the bulk of the electric vehicle maker’s revenue stems from its automotive business. Currently holding approximately 13% of Tesla’s stock, Musk reduced his ownership in 2022 by selling billions of dollars worth of shares, partly to fund his USD 44 billion acquisition of Twitter.
In a separate X post, Musk expressed openness to a dual-class share structure to achieve his desired 25% voting control. However, he lamented that such a structure was deemed unattainable post-Tesla’s initial public offering. Comparing the situation to Meta’s multi-class share structure, which grants significant control to founders like Mark Zuckerberg, Musk found it peculiar that a more reasonable dual-class setup was not allowed post-IPO.
Tesla has not yet responded to requests for comment on Musk’s statements. The CEO is currently entangled in a lawsuit concerning his compensation package. Shareholder Richard Tornetta, who initiated legal proceedings in 2018, alleges that Musk, leveraging his influence over Tesla’s board, secured an excessively generous compensation package without the requirement of working full-time at the EV maker. Musk, addressing the issue on X, clarified that there is no “feud” with the board over his compensation, and the pending verdict is impeding ongoing discussions.