Elon Musk demands 25% voting control of Tesla before expanding AI.

Elon Musk's Bid for Tesla's Steering Wheel in AI Endeavors

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Elon Musk, the CEO of Tesla, hinted on Monday that the company’s corporate structure would change significantly. He wants to gain 25% of the vote before increasing Tesla’s robotics and artificial intelligence (AI) initiatives.

This move, outlined in a recent post on X, has ignited conversations surrounding the implications of concentrated power within a publicly traded company, particularly concerning Tesla’s ambitions in artificial intelligence (AI).

Musk worries about the risks of unchecked AI, so he’s keen on responsibly integrating it into Tesla’s products, like self-driving cars and robots.

Although Tesla is best known for producing electric vehicles, Musk pointed out in his Monday post on X that the company is much more than just a manufacturer of automobiles.

Musk’s request to have a 25% voting stake is more than just a power grab; it’s a calculated move to align company choices with his larger AI vision. At 13% now, reaching the 25% mark would force major changes within the company, requiring complex financial machinations, share reorganization, or hefty compensation.

His proposal to have 25% of the vote takes an intriguing turn when he states that he is amenable to a shared structure with two classes. Musk challenges the discrepancy in a post on X, pointing out that such arrangements are accepted and mentioning Meta’s multi-class share structure, which extends control to the Zuckerberg family’s subsequent generations. With different voting rights for founders or early investors compared to other shareholders, dual-class systems are common.

The company faces a hurdle despite Musk’s recent sell-off of approximately 100 million Tesla shares to fund other ventures, including X. The ongoing lawsuit restricts the introduction of a new pay package for Musk.

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