Elon Musk is so deeply associated with Tesla Inc. (NASDAQ: TSLA) that many think he owns the entire company. His voting shares comprise just over 12% of the total. That means, despite his years of leadership and the success of its stock, Musk could be outvoted on key issues. (Check out 10 amazing things Elon Musk invented.)
Musk took to X, formerly Twitter, which he does control, to make his case. In a statement, he said:
I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control. Enough to be influential, but not so much that I can’t be overturned.
Unless that is the case, I would prefer to build products outside of Tesla. You don’t seem to understand that Tesla is not one startup, but a dozen. Simply look at the delta between what Tesla does and GM.
As for stock ownership itself being enough motivation, Fidelity and other own similar stakes to me. Why don’t they show up for work?
Musk also stated that while more shares could be part of future compensation, his past compensation is in the legal system. A trial in a court in Delaware involves an earlier compensation package and may not be settled soon. That leaves the board in a bind, which would grant him any additional shares.
Musk’s comment is more about Tesla’s future than its past. Tesla’s revenue comes from auto sales and a solar energy business. Its auto business relies to some extent on artificial intelligence (AI) systems, which are rapidly advancing and becoming more complex. Robotics are part of its assembly systems and eventually may become part of Teslas as well.
As the value of AI companies like OpenAI grows, AI’s contribution to Tesla’s market cap is certain. OpenAI, the industry leader, has a value of $200 billion, based on its last financing round.
As Tesla’s CEO and part of its brand, Musk has leverage to get what he wants. The resolution is in the hands of the Tesla board.
The image featured for this article is © Win McNamee / Getty Images News via Getty Images
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