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Elon Musk Demands Greater Control of Tesla for AI and Robotics Development

Musk Threatens to Take AI Initiatives Outside of Tesla if Demand for 25% Voting Control is Not Met

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Tesla CEO Elon Musk is going for more control at the company, and if he doesn't get it, he said he isn't comfortable making Tesla a leader in AI & robotics.
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NEW YORK, NEW YORK - NOVEMBER 29: C.E.O. of Tesla, Chief Engineer of SpaceX and C.T.O. of X Elon Musk speaks during the New York Times annual DealBook summit on November 29, 2023 in New York City. Andrew Ross Sorkin returns for the NYT summit for a day of interviews with Vice President Kamala Harris, President of Taiwan Tsai Ing-Wen, C.E.O. of Tesla, Chief Engineer of SpaceX and C.T.O. of X Elon Musk, former Speaker of the U.S. House of Representatives Rep. Kevin McCarthy (R-CA) and leaders in business, politics and culture. (Photo by Michael M. Santiago/Getty Images)

Overview

  • Tesla CEO Elon Musk has stated he wants a 25% voting control in the company, nearly double his current stake, before he will further develop AI and robotics projects within Tesla.
  • Musk's demand comes as Tesla is expanding into AI and robotics, with projects like the Tesla Full Self-Driving chip and a humanoid robot.
  • Musk's current stake in Tesla is around 13%, having sold a significant amount of his shares in 2022 to fund his purchase of Twitter.
  • If Musk's demand is not met, he has threatened to take his AI initiatives outside of Tesla, which analysts argue would be a significant blow to the company's future growth.
  • Musk's demand for greater control is currently complicated by a pending court case regarding his 2018 compensation plan, which a shareholder has argued was excessive and a breach of fiduciary duty.