{"id":7071,"date":"2024-01-17T11:41:18","date_gmt":"2024-01-17T11:41:18","guid":{"rendered":"https:\/\/demo5.dedicatedhost247.com\/zexo\/elon-musk-wants-more-control-of-tesla-seeks-25-voting-power\/"},"modified":"2024-01-17T11:41:18","modified_gmt":"2024-01-17T11:41:18","slug":"elon-musk-wants-more-control-of-tesla-seeks-25-voting-power","status":"publish","type":"post","link":"https:\/\/demo5.dedicatedhost247.com\/zexo\/elon-musk-wants-more-control-of-tesla-seeks-25-voting-power\/","title":{"rendered":"Elon Musk wants more control of Tesla, seeks 25% voting power"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div id=\"RegularArticle-ArticleBody-6\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-6-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-107335104\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Elon Musk, chief executive officer of Tesla Inc., during a fireside discussion on artificial intelligence risks with Rishi Sunak, UK prime minister, not pictured, in London, UK, on Thursday, Nov. 2, 2023.\u00a0<\/p>\n<p>Tolga Akmen | Bloomberg | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Tesla and SpaceX CEO Elon Musk, who also owns the social network X (formerly known as Twitter), said Monday that he wants about 25% of voting control over his electric vehicle business.<\/p>\n<p><a href=\"https:\/\/www.cnbc.com\/elon-musk\/\">Musk<\/a> already owns around 13% of <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-2\"><a href=\"https:\/\/www.cnbc.com\/quotes\/TSLA\/\">Tesla<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>, or approximately 411 million shares of the company&#8217;s 3.19 billion shares in common stock outstanding, as reported in the company&#8217;s last financial filing for the third quarter of 2023.<\/p>\n<p>That&#8217;s a large stake, especially considering that <a href=\"https:\/\/www.cnbc.com\/2022\/12\/15\/elon-musk-sells-another-huge-chunk-of-tesla-shares-.html\">Musk sold tens of billions of dollars worth of his shares in Tesla<\/a> in 2022, largely to finance a $44 billion leveraged buyout of Twitter.<\/p>\n<p>Now, Musk is angling for even more control over Tesla.<\/p>\n<p>Specifically, <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1746999488252703098\" target=\"_blank\" rel=\"noopener\">Musk wrote on Monday<\/a>, &#8220;I am uncomfortable growing Tesla to be a leader in AI &amp; robotics without having ~25% voting control. Enough to be influential, but not so much that I can&#8217;t be overturned.&#8221;<\/p>\n<p>&#8220;Unless that is the case, I would prefer to build products outside of Tesla,&#8221; the billionaire executive said on X.<\/p>\n<p>&#8220;You don&#8217;t seem to understand that Tesla is not one startup, but a dozen. Simply look at the delta between what Tesla does and <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-5\"><a href=\"https:\/\/www.cnbc.com\/quotes\/GM\/\">GM<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>. As for stock ownership itself being enough motivation, Fidelity and other own similar stakes to me. Why don&#8217;t they show up for work?&#8221;<\/p>\n<p>Tesla did not immediately respond to a request for comment.<\/p>\n<p>Musk&#8217;s post stood at odds with remarks he previously made suggesting Tesla is already an important artificial intelligence and robotics company, and its value hinges on its prowess in these domains.<\/p>\n<p>In April 2022, Musk predicted during <a href=\"https:\/\/www.cnbc.com\/2022\/04\/20\/tesla-tsla-earnings-q1-2022.html\">Tesla&#8217;s first-quarter earnings call<\/a>\u00a0that the company&#8217;s humanoid robot, Optimus, &#8220;ultimately will be <a href=\"https:\/\/www.cnbc.com\/2022\/04\/21\/elon-musk-says-optimus-robot-will-be-worth-more-than-tesla.html\">worth more than the car business<\/a> and worth more than full self-driving.&#8221;<\/p>\n<p>Tesla unveiled an early <a href=\"https:\/\/www.cnbc.com\/2022\/09\/30\/elon-musk-shows-off-humanoid-robot-prototype-at-tesla-ai-day.html\">Optimus prototype<\/a> at Tesla AI Day in September that year, and Musk said in a post around that event, &#8220;The point of AI Day is to show the immense depth &amp; breadth of Tesla in AI, compute hardware &amp; robotics.&#8221;<\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-107352074\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-107352074\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000326947\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><span class=\"InlineVideo-videoButton\"\/><span\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>More recently, on Dec. 27, 2023, Musk criticized Craig Irwin, senior research analyst at Roth Capital, who appeared on CNBC&#8217;s &#8220;<a href=\"https:\/\/www.cnbc.com\/closing-bell-overtime\/\">Closing Bell Overtime<\/a>,&#8221; saying he thought Tesla was &#8220;egregiously overvalued,&#8221; especially compared with Japanese auto giant <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-10\"><a href=\"https:\/\/www.cnbc.com\/quotes\/TM\/\">Toyota<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>.<\/p>\n<p>Bristling at the comparison to a large competitor that has sold more hybrid electric vehicles than battery electric models, Musk said <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1740201298769990091\" target=\"_blank\" rel=\"noopener\">in a post on X<\/a>, &#8220;He has the wrong frame of reference. Tesla is an AI\/robotics company.&#8221;<\/p>\n<p><span\/><\/p>\n<p>While Tesla&#8217;s last annual or <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1318605\/000095017023001409\/tsla-20221231.htm\" target=\"_blank\" rel=\"noopener\">10-K filing<\/a> showed that around 95% of its revenue came from its &#8220;automotive&#8221; segment in 2022, in its <a href=\"https:\/\/www.cnbc.com\/2023\/10\/18\/tesla-tsla-earnings-q3-2023.html\">third-quarter<\/a> 2023 financial filing, the company described its business as &#8220;increasingly focused on products and services based on artificial intelligence, robotics and automation.&#8221;<\/p>\n<p>Even on Monday morning, Musk posted a video clip on X showing the Optimus robot in development folding laundry at a table, although the robot was remote-operated <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1746970616060580326\" target=\"_blank\" rel=\"noopener\">and not autonomous<\/a>.<\/p>\n<p>Musk&#8217;s wish to control even more of Tesla will undoubtedly add to the pressure on Tesla&#8217;s board of directors in 2024.<\/p>\n<p>In addition to determining appropriate CEO and director compensation, Tesla&#8217;s board is already facing some investors&#8217; concerns over several issues.<\/p>\n<p>Some investors and lawmakers have expressed concerns over: <a href=\"https:\/\/www.cnbc.com\/2023\/05\/23\/elon-musk-splits-time-across-spacex-tesla-and-twitter-heres-how.html\">Musk&#8217;s split focus<\/a> and <a href=\"https:\/\/www.cnbc.com\/2022\/10\/31\/elon-musk-has-pulled-more-than-50-tesla-engineers-into-twitter.html\">use of company resources<\/a> as he continues to run SpaceX, X Corp. and other ventures alongside Tesla; his <a href=\"https:\/\/www.cnbc.com\/2023\/05\/16\/elon-musk-defends-inflammatory-tweets-ill-say-what-i-want.html\">divisive political and cultural commentary<\/a>, including recent tweets disparaging corporate diversity and inclusion initiatives; federal probes involving <a href=\"https:\/\/www.cnbc.com\/2023\/10\/23\/tesla-discloses-doj-probes-over-vehicle-range-personal-benefits-more.html\">Musk and Tesla<\/a>; and worries over drug use by the CEO, recently reported <a href=\"https:\/\/www.wsj.com\/business\/elon-musk-illegal-drugs-e826a9e1\" target=\"_blank\" rel=\"noopener\">by The Wall Street Journal<\/a>.<\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-107355324\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-107355324\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000327740\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><img class=\"InlineVideo-videoThumbnail\" src=\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/107355325-17047187021704718700-32799556721-1080pnbcnews.jpg?v=1704718701&amp;w=750&amp;h=422&amp;vtcrop=y\" alt=\"Elon Musk's drug use worries leaders at Tesla and SpaceX\"\/><span class=\"InlineVideo-videoButton\"\/><span\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Musk is also in the midst of a trial in Delaware over his earlier $56 billion pay package from Tesla. The unparalleled 2018 CEO compensation plan made Musk into one of the richest people on the planet.<\/p>\n<p>Shareholder <a href=\"https:\/\/www.cnbc.com\/2022\/11\/16\/elon-musk-says-he-doesnt-want-to-be-a-ceo-walks-back-sec-insults.html\">Richard J. Tornetta has sued Musk and Tesla<\/a>, alleging the CEO&#8217;s compensation was excessive and its authorization amounted to a breach of fiduciary duty by Tesla and its board.<\/p>\n<p>Musk also noted on Monday that Tesla&#8217;s board of directors is waiting to establish a new compensation plan for him until the Tornetta case is decided in the Delaware Chancery Court.<\/p>\n<p><span\/><\/p>\n<p>He wrote: &#8220;The reason for no new &#8216;compensation plan&#8217; is that we are still waiting for a decision in my Delaware compensation case. The trial for that was held in 2022, but a verdict has yet to be made.&#8221;<\/p>\n<p>Referring to his call for 25% voting control, he said: &#8220;If I have 25%, it means I am influential, but can be overridden if twice as many shareholders vote against me vs for me. At 15% or lower, the for\/against ratio to override me makes a takeover by dubious interests too easy.&#8221;<\/p>\n<p>In an earlier trial in Delaware, several Tesla board members agreed last year to pay back $735 million to the company in a settlement agreement over their own director compensation.<\/p>\n<p><em><strong>Don&#8217;t miss these stories from CNBC PRO:<\/strong><\/em><\/p>\n<\/div>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Elon Musk, chief executive officer of Tesla Inc., during a fireside discussion on artificial intelligence risks with Rishi Sunak, UK prime minister, not pictured, in London, UK, on Thursday, Nov. 2, 2023.\u00a0 Tolga Akmen | Bloomberg | Getty Images Tesla and SpaceX CEO Elon Musk, who also owns the social network X (formerly known as [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7072,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[46],"tags":[1850,199,2449,3174,306,298,557,1844,1121,8577,304,1649,193,8554,55],"jetpack_featured_media_url":"https:\/\/image.cnbcfm.com\/api\/v1\/image\/107335104-1700154424300-gettyimages-1760546699-UK_MUSK.jpeg?v=1705365208&w=1920&h=1080","_links":{"self":[{"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/posts\/7071"}],"collection":[{"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/comments?post=7071"}],"version-history":[{"count":0,"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/posts\/7071\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/media\/7072"}],"wp:attachment":[{"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/media?parent=7071"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/categories?post=7071"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/demo5.dedicatedhost247.com\/zexo\/wp-json\/wp\/v2\/tags?post=7071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}