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Tesla CEO Elon Musk is not too happy with the amount of control — voting control that is — that he has over Tesla. While Musk runs Tesla — and SpaceX for that matter — as the chief executive officer, he doesn’t have too much voting control. In a series of posts on his social media platform X, Musk said that he is “uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control.” He admitted that the current control is “enough to be influential, but not so much that I can’t be overturned.”
He further explained why he feels like that.“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 explained. He also said that unless he gets ‘enough’ control he would “prefer to build products outside of Tesla.”
“If I have 25%, it means I am influential, but can be overridden if twice as many shareholders vote against me vs for me. At 15% or lower, the for/against ratio to override me makes a takeover by dubious interests too easy,” he said on X.
Musk also pointed that why stock ownership itself isn’t enough motivation. “Fidelity and other own similar stakes to me. Why don’t they show up for work?”, he countered. Musk reportedly has close to 411 million shares of Tesla.
New compensation plan for Musk?
He was also asked about his new compensation plan. “The reason for no new “compensation plan” is that we are still waiting for a decision in my Delaware compensation case. The trial for that was held in 2022, but a verdict has yet to be made.”
The Tesla CEO further clarified “I put “compensation plan” in quotes, because, from my standpoint, this is primarily about ensuring the right amount of voting influence at Tesla.”
He further explained why he feels like that.“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 explained. He also said that unless he gets ‘enough’ control he would “prefer to build products outside of Tesla.”
“If I have 25%, it means I am influential, but can be overridden if twice as many shareholders vote against me vs for me. At 15% or lower, the for/against ratio to override me makes a takeover by dubious interests too easy,” he said on X.
Musk also pointed that why stock ownership itself isn’t enough motivation. “Fidelity and other own similar stakes to me. Why don’t they show up for work?”, he countered. Musk reportedly has close to 411 million shares of Tesla.
New compensation plan for Musk?
He was also asked about his new compensation plan. “The reason for no new “compensation plan” is that we are still waiting for a decision in my Delaware compensation case. The trial for that was held in 2022, but a verdict has yet to be made.”
The Tesla CEO further clarified “I put “compensation plan” in quotes, because, from my standpoint, this is primarily about ensuring the right amount of voting influence at Tesla.”
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