Musk Seeks Greater Control Over Tesla to Advance AI Initiatives

Tesla’s CEO Elon Musk is on a mission to position the automaker as a frontrunner in the realms of artificial intelligence and robotics. However, he has expressed concerns about lacking the necessary voting power within the company to pursue these ambitious goals. In a recent post on his X (formerly Twitter) account, Musk revealed his desire for at least 25% voting control, nearly doubling his current 13% stake. He emphasized wanting enough influence to direct the company's future without having absolute power that could make him unassailable.

Musk has shared glimpses of his vision for AI and robotics, introducing innovative projects like the Optimus bot and Dojo, a sophisticated supercomputer designed to enhance the training of Tesla's camera-first, self-driving models. Despite these initiatives, he has indicated that if he does not secure more voting power, he might choose to develop new products outside of Tesla.

Reflecting on recent financial moves, Musk sold approximately $7 billion worth of Tesla stock to support his $44 billion acquisition of Twitter in October 2022. In a follow-up post, he described the Tesla board as “great” and mentioned that there have been no new compensation plans while he awaits a verdict related to a lawsuit filed in Delaware. The lawsuit, initiated by shareholder Richard Tornetta in 2018, contests Musk’s compensation package. Although the trial concluded in 2022, a decision has yet to be reached.

Musk articulated his reasoning for wanting a 25% stake: “If I have 25%, it means I am influential but can be overridden if twice as many shareholders vote against me versus for me.” He further explained that with a lower stake, like 15% or less, the dynamics of shareholder voting could make it alarmingly easy for outside interests to take control of the company.

Regarding potential corporate governance structures, Musk expressed openness to a dual-class voting system, where founders often hold shares with greater voting rights to maintain control. However, he was informed that instituting such a structure post-IPO in Delaware is nearly impossible.

In addition to his endeavors with Tesla, Musk has also launched his AI venture, xAI, in July 2023. This startup aims to challenge existing AI powerhouses, including OpenAI, with the development of Grok, a chatbot designed to compete directly with ChatGPT.

Elon Musk’s ambitions reflect his commitment to driving innovation in AI and robotics, presenting an intriguing future for Tesla as it navigates through governance challenges and competitive landscapes in technology.