Elon Musk wants greater control of Tesla (TSLA) and is seeking 25% voting control at the electric vehicle manufacturer.
Musk currently owns 13% of Tesla through stock he holds, which is equal to 411 million shares of the company’s 3.19 billion shares outstanding.
While a large stake, Musk is trying to gain even more control over Tesla, writing on social media that: “I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control.”
He added on X, formerly Twitter, that: “Unless that is the case, I would prefer to build products outside of Tesla.”
Musk’s post stood at odds with remarks he previously made suggesting Tesla is already an important artificial intelligence and robotics company.
Although 95% of Tesla’s revenue comes from its automotive segment, the company described its business in a recent regulatory filing as “increasingly focused on products and services based on artificial intelligence, robotics and automation.”
Musk wanting greater control of Tesla will put pressure on Tesla’s board of directors, which
is already facing investor concerns over several issues.
Investors have expressed concerns over Musk’s divisive political and cultural commentary, and his reported drug use as detailed in a recent Wall Street Journal article.
Referring to his call for 25% voting control, Musk said on X: “If I have 25%, it means I am influential, but can be overridden if twice as many shareholders vote against me vs for me.”
Tesla’s stock has gained 67% in the last 12 months to trade at $218.89 U.S. per share. However, the stock has declined 12% so far in 2024.
Tech Insider
