Elon Musk, the world's richest individual and CEO of Tesla, has recently voiced his concern over the lack of control he has over the company as its chief executive and leading shareholder. With a current ownership stake of 13%, Musk believes that he needs to possess at least 25% control in order to effectively shape the future direction of Tesla.
In a statement made on his social media platform, X, Musk explained his reasoning by stating, "Having a 25% ownership would guarantee me a significant level of influence, although it's important to note that if a majority of shareholders vote against my decisions, they can still override me. At ownership levels below 15%, the ratio of votes to override my decisions becomes too favorable for potential takeovers by undesirable interests."
Despite these concerns, Musk made it clear that he remains committed to developing innovative products, even if it means exploring opportunities outside of Tesla. He disclosed his involvement with xAI, a separate company that includes his ChatGPT competitor Grok.
Additionally, Musk expressed satisfaction with the Tesla board, including his brother Kimbal Musk, describing it as "great." He revealed that the board has deferred the implementation of a new compensation plan until the resolution of the ongoing Delaware compensation case.
While Musk stated his willingness to accept a dual-class voting structure, he has been informed that such a structure is unattainable following Tesla's initial public offering.
Despite recent declines in Tesla's stock performance (12% decline this year and 25% decline since mid-July), the company still boasts an impressive 79% increase over the past 52 weeks.
NEXT POST
