Less than two years after selling a significant portion of his Tesla shares to acquire the social media platform Twitter (now X), Elon Musk expresses a desire for a larger stake in Tesla. Currently holding around 13% of the company, Musk highlights concerns about the existing structure leaving Tesla vulnerable to takeovers by what he terms “dubious interests.”
AI and Robotics Focus Raises Governance Concerns
Musk particularly emphasizes his discomfort with Tesla’s pursuits in artificial intelligence (AI) features. He believes that in order to lead in AI and robotics, he requires a 25% voting control, or else he prefers exploring such projects outside of Tesla. This stance has generated debate about the governance and future direction of Tesla, known for its emphasis on self-driving and automated capabilities.
Market Reaction and Potential Impact
Elon Musk’s comments trigger a market response, causing Tesla shares to open more than 2% lower. Analysts anticipate a resolution by the board but acknowledge the potential for added drama. Speculation arises regarding Musk potentially creating a separate company for his AI projects, which could be perceived negatively for Tesla’s future trajectory. The ongoing lawsuit over a 2018 pay package adds another layer of complexity to the situation, as shareholder concerns about the generosity of Musk’s compensation plan linger.
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Source: BBC
