Tesla’s Future in AI Hangs in the Balance as Musk Pushes for Control


Most read

Loading Most Ready posts..


  • Elon Musk aims for 25% control in Tesla for AI and robotics but only holds 13%.
  • Musk considers a dual-class structure but faces challenges.
  • Tesla’s stock dips 2% post-Musk’s comments, reflecting uncertainty.

Elon Musk, the CEO of Tesla (NASDAQ: TSLA), has raised eyebrows with his recent social media statements concerning the automaker’s involvement in artificial intelligence (AI) and robotics. 

In a series of posts on X, formerly known as Twitter, Musk expressed his discomfort with expanding Tesla’s role in these fields without securing a minimum of 25% of voting control within the company, a stake nearly double his current ownership.

On Monday, Musk took to X to outline his concerns regarding Tesla’s future involvement in AI and robotics. He stated that he would only feel comfortable expanding Tesla’s role in these areas if he could obtain a significant stake in the company, enough to exert influence but not so much that he couldn’t be overturned. 

As things currently stand, Musk owns approximately 13% of Tesla’s stock, having divested billions of dollars in shares in 2022. This divestment was partly aimed at financing his ambitious $44 billion acquisition of Twitter.

A call for influence

Musk’s call for a 25% voting control stake in Tesla has ignited discussions within the financial and tech communities. 

He appears eager to ensure that his vision and decision-making power remain pivotal in the company’s strategic moves, especially concerning AI and robotics development. Musk’s influence has been central to Tesla’s growth and direction, and he seems determined to maintain that role.

In a subsequent X post, Musk indicated his willingness to consider a dual-class share structure to secure 25% voting control. Such a structure typically involves issuing shares with enhanced voting rights, allowing Musk to maintain a significant say in the company’s affairs despite his lower overall ownership percentage.

However, Musk revealed that he had been informed that implementing a dual-class share structure was considered impossible following Tesla’s initial public offering (IPO). This revelation suggests that significant hurdles may stand in the way of Musk’s quest for greater voting control within the company.

Musk’s public statements have not gone unnoticed by investors, as Tesla’s shares experienced a decline of approximately 2% in premarket trading on Tuesday following his comments. The market’s reaction reflects uncertainty and potential concerns about the implications of Musk’s stance on Tesla’s future.

The concept of dual-class share structures has its advantages and disadvantages. While it can provide founders and influential figures with the means to maintain control over their companies, it can also lead to governance issues and concerns about accountability. Investors often prefer a more equitable distribution of voting power.

What lies ahead for Tesla?

As Musk continues to push for a larger stake in Tesla’s voting control, how the company’s board of directors and shareholders will respond remains to be seen. The potential implementation of a dual-class share structure could be a contentious issue, with various stakeholders having different views.

In the meantime, Tesla’s pursuit of AI and robotics remains a significant aspect of its future growth strategy. The company has made notable strides in developing autonomous vehicles and AI-powered technologies.

Musk’s vision for Tesla’s role in shaping the future of transportation and automation has been a driving force behind these efforts.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Share link:

Benson Mawira

Benson is a blockchain reporter who has delved into industry news, on-chain analysis, non-fungible tokens (NFTs), Artificial Intelligence (AI), etc.His area of expertise is the cryptocurrency markets, fundamental and technical analysis.With his insightful coverage of everything in Financial Technologies, Benson has garnered a global readership.

Stay on top of crypto news, get daily updates in your inbox

Related News

Subscribe to CryptoPolitan