Tesla CEO Elon Musk Wants More Voting Control
Elon Musk, the CEO of Tesla, has expressed his desire to have 25% voting control of the company before expanding its artificial intelligence (AI) and robotics efforts. Without this increased stake, Musk stated that he would "prefer to build products outside of Tesla."
These comments from Musk have caused a "firestorm," according to Wedbush Securities analyst Dan Ives. Currently, Musk's ownership stake in Tesla stands at around 13%. In order to achieve the desired 25% voting control, Tesla would need to make significant changes, such as providing Musk with a major payout, restructuring its shares, or exploring other financial options.
The concern is not just about the potential financial implications of Musk's increased ownership, but also the risk that he may take his AI initiatives outside of Tesla. The company has been actively working on various projects in this field, including the development of the Tesla Full Self-Driving chip (FSD) and a humanoid robot. These initiatives have attracted investors who see the potential for Tesla to lead in the development of humanoid robots capable of performing routine tasks or fully self-driving cars.
For more information on Tesla's AI projects, you can visit their official website.
Musk's AI Projects: A Potential Threat to Tesla
Renowned entrepreneur Elon Musk's recent comments about his AI projects have raised concerns among investors. In a research note, analyst Daniel Ives highlighted the importance of keeping all AI initiatives within Tesla for the company's success.
Ives stated, "It's no secret and a key to our bullish thesis that all AI initiatives be kept within Tesla from Dojo to Optimus to FSD to various robotaxi and other robotic developments. If Musk ultimately went down the path to create his own company (separate from Tesla) for his next generation AI projects, this would clearly be a big negative for the Tesla story."
Following Musk's comments, Tesla shares slipped 1.8% in premarket trading.
Musk: "I can't be overturned"
While Tesla is primarily known for its electric vehicle manufacturing, Musk emphasized in a recent post on X, formerly known as Twitter, that the company is much more than just a car maker.
Musk wrote, "You don't seem to understand that Tesla is not one startup, but a dozen. Simply look at the delta between what Tesla does and GM."
He further explained that his desire for 25% control of Tesla is driven by the need to have enough influence without being immune to being overruled.
However, it is worth noting that Musk has been reducing his stake in Tesla by selling approximately 100 million shares this year to fund his purchase of X. Additionally, Tesla's board is unable to introduce a new pay package due to an ongoing lawsuit regarding excessive pay for Musk, tied to his 2018 compensation valued at up to $55 billion, according to Ives.
Renowned Analyst Predicts Musk's AI Drama Will Not Impact Tesla
Renowned analyst Daniel Ives has weighed in on the recent drama surrounding Elon Musk's comments about artificial intelligence (AI) and its potential risks. In a note to investors, Ives stated that he believes the issue will blow over and not have a significant impact on Tesla's future.
Ives emphasized that Musk is synonymous with Tesla and that AI is a crucial aspect of the company's future. He wrote, "Musk is Tesla and Tesla is Musk and AI is a key to the future of Tesla." Ives believes that this drama is just another chapter in the ongoing Tesla story and will not bear any lasting consequences.
