January 16th 2024: In a surprising turn of events, Tesla’s enigmatic CEO, Elon Musk, has issued an ultimatum, demanding an additional 12 percent of the company’s shares to further his ambitions of turning Tesla into a leader in artificial intelligence (AI) and robotics. Musk took to his social media platform, X, to convey this message, stating that without gaining ownership of 25 percent of Tesla, he would be “uncomfortable” leading the company into the realm of advanced technologies.
Musk’s ultimatum raises eyebrows, as it underscores his desire for increased control over the electric vehicle and clean energy company. The controversial entrepreneur has been at the helm of Tesla since taking over from founders Martin Eberhardt and Marc Tarpenning in 2004. Over the past few years, Musk has sold billions of dollars worth of Tesla shares, but his recent call for more significant ownership signals a shift in his strategy.
In his social media post, Musk emphasized the pivotal role he envisions for Tesla in AI and robotics. However, he made it clear that without the additional shares, he would “prefer to build products outside of Tesla.” This statement raises questions about the future trajectory of Musk’s technological endeavors and whether they might extend beyond the confines of Tesla.
Musk’s desire for increased control is not limited to share ownership; he expressed interest in a dual-class voting structure similar to Facebook’s, allowing CEO Mark Zuckerberg control of the company. However, such a restructuring would be illegal post-Tesla’s initial public offering (IPO).
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The CEO’s aspirations in AI and robotics have been showcased at various investor events where Tesla’s robotic capabilities were demonstrated. Despite initial claims about an “alien dreadnought” production line, Musk reversed his stance in 2018, stating that “Humans are underrated.” Recently, Tesla unveiled a new robot iteration through a dancing and egg-handling demonstration.
While Musk insists there is no rift between him and the Tesla board, recent reports suggest a potentially turbulent relationship. A Wall Street Journal report alleges Musk’s concerning drug problem, adding to the challenges Tesla faces. The company has seen a 25 percent drop in value over the last six months, and its once-remarkable profit margins have dwindled to industry averages.
Furthermore, questions linger about Musk’s allocation of Tesla resources and staff to his social media network and his divided attention with SpaceX. The CEO’s previous $56 billion compensation package is currently under scrutiny in a Delaware lawsuit, filed by a shareholder who deems it excessive and a breach of fiduciary duty. In another case, Tesla board members must repay $733 million to the company over compensation disputes.
As Musk’s ultimatum reverberates through the business world, the future of Tesla and its pivotal role in AI and robotics remains uncertain, shrouded in the complex dynamics of corporate governance, legal challenges, and the ambitious vision of one of the tech industry’s most polarizing figures.