On Tuesday, Elon Musk expressed his discomfort with the idea of expanding Tesla's leadership in artificial intelligence (AI) and robotics without securing 25% voting control in the company.
Musk, who currently holds approximately a 13.4% stake in Tesla, sold his shares to acquire X for $44 billion in October 2022. In a post on X, Musk stated that he would prefer to build products outside of Tesla unless he attains the 25% voting control, which he considers sufficient for influence without being impervious to opposition.
In Musk's words, "25% voting control is enough to be influential, but not so much that I can't be overturned." He emphasized that Tesla is not a singular startup but a conglomerate of various ventures, highlighting the distinctions between Tesla and other companies like GM.
Musk challenged the notion that stock ownership alone serves as adequate motivation, pointing out that entities like Fidelity own similar stakes without actively participating in the company's operations. He also praised the Tesla board while underscoring the significance of having 25% voting control.
"If I have 25%, it means I am influential but can be overridden if twice as many shareholders vote against me vs. for me," Musk explained. "At 15% or lower, the for/against ratio to override me makes a takeover by dubious interests too easy," he added.
Elon Musk's stance reflects his strategic vision for maintaining influence within Tesla while allowing for a balanced governance structure.
(With Agency Inputs)
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