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On January 15, Elon Musk, Tesla’s CEO, expressed his discomfort with the idea of expanding the company’s leadership in artificial intelligence and robotics without securing at least a 25% voting control, a nearly twofold increase from his current ownership.
Through a post on the social media platform X, Musk emphasized the importance of having stock that grants influence without making him immune to overturning decisions. He hinted at the possibility of pursuing projects outside of Tesla if this condition wasn’t met.
Musk Expresses Need for Tesla Control
Despite Musk’s long-standing promotion of Tesla’s Full Self-Driving software and humanoid robots, most of the company’s revenue is derived from its automotive business.
Musk, currently the world’s wealthiest individual, holds approximately 13% of Tesla stock, having sold billions of dollars worth of shares in 2022, partly to fund his $44 billion acquisition of Twitter.
Musk also indicated his openness to a dual-class share structure to attain the desired 25% voting control.
However, he mentioned being informed that such a structure was deemed impossible after Tesla’s initial public offering. Musk found it peculiar that a complex multi-class share system, akin to Meta’s, was acceptable pre-IPO, providing prolonged control for founders like Mark Zuckerberg.
He noted the disparity, questioning why a reasonable dual-class structure wasn’t allowed post-IPO. In the meantime, Tesla has yet to respond to requests for comments on Musk’s statements.
Meanwhile, Musk is currently dealing with a lawsuit related to his compensation package.
Shareholder Richard Tornetta filed a suit in 2018, alleging that Musk used his influence over Tesla’s board to secure an outsized compensation package without committing to full-time work at the EV company.
On X, Musk clarified that there is no ongoing feud with the board regarding his compensation, but the pending verdict is hindering further discussions.
Tesla’s Unraveled Plans for 2024
Amid the ongoing events, Tesla has not relented in advancing its operations, which it intends to make clearer this year. This is particularly true considering the company’s prospective improvements in artificial intelligence, Tesla bot, licensing, and Dojo.
These different areas of the firm are now drawing significant attention from investors and analysts alike, marking 2024 as a year when the company could achieve the coveted $1 trillion in valuation.
Analysts believe that the growth in valuation will mainly hinge on the company’s Network Services, FSD licensing, Mobility, and several other non-auto commitments.
Importantly, investors are not overly concerned about the firm’s current earnings; they’re mostly drawn to its potential in artificial intelligence, which vividly stands out.
Notably, Tesla’s artificial intelligence operation is poised to grow its stock value to significantly over the coming five years.
The company also believes that Dojo will become a key computing system globally before the year’s end, as it anticipates a twentyfold increase in computing power. Meanwhile, the remarkable articulation of the Tesla bot’s hand has sparked interest across diverse applications.
Leveraging its manufacturing prowess, Tesla plans to scale up production of the Tesla bot, presenting a competitive edge in terms of cost.
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