Elon Musk, the CEO of Tesla Inc. TSLA, has relayed the message that he is seeking increased control of the company prior to advancing artificial intelligence projects.
What Happened: Taking to his social media platform, X (formerly Twitter) over the weekend, Musk revealed he might consider developing AI products outside of Tesla if he isn’t given 25% voting control within the company.
He was responding to an X user who asked him the reason behind needing an additional hefty compensation package.
The tech billionaire voiced his unease about leading Tesla in AI & robotics without about 25% voting control saying, "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."
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Musk also showed interest in a dual-class voting structure, but acknowledged he was advised it’s unattainable post-IPO in Delaware.
"If dual-class can be done, I'm all for it," he said, adding, "It's weird that a crazy multi-class share structure like Meta has, which gives the next 20+ generations of Zuckerbergs control, is fine pre-IPO, but even a reasonable dual-class is not allowed post-IPO.
The Tesla leader currently holds over 12% of the company. His statements surfaced as Tesla shares have declined 12% this year, erasing over $94 billion in market cap, following shareholder discontent over various matters and negative press, reported Bloomberg.
Presently, Tesla is investing significantly in the development of the Optimus robot and the Dojo supercomputer project. The automaker has invested over $1 billion into the latter project which is estimated to add $500 billion to Tesla’s value, the report noted.
Why It Matters: Musk’s compensation has been a topic of discussion after he showed interest in a new compensation package. Previously, it was reported that Musk hasn’t taken a salary from Tesla since 2019.
Instead, he holds shares and options linked to the company’s financial targets. His last block of options under a 2018 pay package was confirmed by Tesla in early 2023.
Meanwhile, it has also been reported that Tesla has been facing criticism over the performance of its vehicles in winter conditions. Musk, however, defended Tesla’s performance, saying that the vehicles operate excellently in snow.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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