Elon Musk wants to take control of Tesla to unleash his new idea technology
He said Elon Musk CEO of Tesla and SpaceX, also owns social network
According to the company's latest third-quarter 2023 financial report, Musk already holds about 13% of Tesla's shares, close to 411 million of the company's 3.19 billion outstanding shares.
That share is considered large, especially considering that Musk sold tens of trillions of dollars worth of Tesla stock in 2022 to fund a $44 billion deal to acquire Twitter. Musk is now leaning toward regaining more control over Tesla.
4 Last Monday, Musk wrote on the I would rather build products outside of Tesla,” he added.
Musk continued: “It seems you don't understand that Tesla is not a startup, but dozens of companies. All you have to do is look at what Tesla is doing, what GM is doing. As for the equity, That in itself is motivation enough.”
Musk's post contradicts his previous statements, which suggested that Tesla is already a major player in artificial intelligence and robotics and that its value depends on its strength in these areas.
I'm uncomfortable with Tesla becoming the leader in AI and robotics without ~25% voting control. Influential enough, but not so big that it cannot be overturned.
Unless that's the case, I'd rather build products outside of Tesla. It seems you don't understand…
— Elon Musk (@elonmusk) January 15, 2024
Musk predicted during Tesla's first-quarter earnings call in April 2022 that the company's autonomous robot, Optimus, “will ultimately be more valuable than the car business and more worthy of attention than fully self-driving technology.”
Tesla unveiled an early prototype of Optimus at Tesla Artificial Intelligence Day in September 2022. Musk said in a post about the event: “The goal of Artificial Intelligence Day is to showcase Tesla’s progress in artificial intelligence. Huge depth and breadth of expertise in , computing devices and artificial intelligence. Robotics.”
On December 27, Musk criticized Roth Capital chief research analyst Craig Irwin for appearing on CNBC's “Closing Bell Overtime” program, saying that he believed Tesla was “seriously overvalued.” Especially compared to Japanese car giant Toyota.
“His (Craig Irving) frame of reference is wrong,” Musk said in a post on of pure electric vehicles. “Tesla is an AI/robotics company.”
Although Tesla's latest annual report showed that about 95% of its revenue in 2022 came from the “automotive” field, the company described its business in its financial report for the third quarter of 2023 as “increasingly focused on vehicles based on this field.” product and service”. Artificial Intelligence, Robotics and Automation. “
Roth Capital analyst Craig Irwin $Tesla:
“I'm pessimistic because I think it's grossly overvalued. When we benchmark it against Toyota, Tesla has everything Toyota doesn't; Chinese competition is passing them. 2024 is going to be a tough year. “
He has $85 in PT. pic.twitter.com/bWuDn95QnD
— Sawyer Merritt (@SawyerMerritt) December 28, 2023
Problems facing Musk and investors
According to the report, there is no doubt that Musk’s desire to control more power at Tesla will increase pressure on Tesla’s board of directors in 2024.
In addition to the issue of determining appropriate CEO and director compensation, Tesla's board has faced concerns from some investors about several issues.
Some investors and lawmakers have expressed concerns about Musk's diversion and use of company resources while continuing to run SpaceX, XCorp and other ventures with Tesla. On top of that, he has made divisive political and cultural comments, including his recent tweets disparaging institutional diversity and inclusion initiatives; the Wall Street Journal recently reported federal charges against Musk and Tesla investigation and concerns about CEO drug use.
Musk is also on trial in Delaware over his previous $56 billion compensation package from Tesla. The CEO's unparalleled 2018 compensation package makes him one of the richest people on the planet.
Shareholder Richard J. Tornetta filed a lawsuit against Musk and Tesla, alleging that the CEO's compensation was excessive and that his delegation constituted a breach of fiduciary duty by Tesla and its board of directors.
Musk also said Tesla's board of directors is waiting to develop a new compensation plan for him until the Delaware Chancery Court rules in the Tornetta case. “The reason there is no new compensation plan is because we are still waiting for the ruling in the Delaware compensation case,” he said. “The trial on this matter is scheduled for 2022, but a ruling has not yet been issued.”
Referring to his call for 25% of the voting rights, he said: “If I have 25% of the voting rights, that means I have influence, but if the number of shareholders who vote against me is the number of shareholders who vote for me Twice the number of shareholders, then my voting rights can be overridden.”
At 15% or lower, the percentage for or against bypass makes takeover by dubious interest groups very easy.
In a previous trial in Delaware, several Tesla board members agreed last year to pay the company $735 million in a settlement to reimburse their directors.
