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Elon Musk confirms his threat: give me 25% of Tesla or you don’t get AI and robotics

May 20, 2024 - electrek.co
Elon Musk, CEO of Tesla, has reportedly threatened to halt the development of AI and robotics products at the company unless he is given 25% control over it. Musk, who currently owns about 13% of Tesla’s shares, has previously stated that Tesla is essentially an AI and robotics company and is worth virtually nothing without its main AI product, self-driving. He has also been making moves to ensure that AI and robotics are the only path for Tesla, such as canceling cheaper Tesla vehicles in favor of its upcoming Robotaxi.

Musk's threat has raised concerns as he has suggested that he is uncomfortable building AI products at Tesla unless he has 25% control over the company, something he currently does not have. This comes after he sold billions of dollars worth of Tesla shares to buy Twitter. To gain more control, he would need another compensation package worth tens of billions or a new share class at Tesla. The CEO has also approved a post stating that if he gets 25% voting power, Tesla is reincorporated in Texas, and his 2018 compensation package is approved, then AI & Robotics will stay within Tesla, allowing the company to become the largest in the world.

Key takeaways:

  • Elon Musk has threatened to stop building AI and robotics products at Tesla unless he gains 25% control over the company.
  • Musk currently owns about 13% of Tesla’s shares and would need another compensation package or a new share class to gain more control.
  • Musk has approved a post stating that if he gets 25% voting power, Tesla reincorporates in Texas, and his 2018 compensation package is approved, then AI & Robotics will stay within Tesla.
  • The CEO's threat has been criticized as bizarre and potentially damaging to the company, with questions raised about its legality.
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