Elon Musk shook the agenda once again with a reactionary post on X. Saying, “If you don’t give me 25% of the company, I won’t produce AI and robotic products,” Elon Musk issued an ultimatum to all Tesla shareholders. But where did this major threat come from and what does it mean? Here are the details…
Elon Musk’s ultimatum to Tesla shareholders! He demands a 25% stake
Elon Musk has repeatedly stated that Tesla is fundamentally an artificial intelligence and robotics company beyond being an automobile company. Emphasizing the importance of these products, Musk said, “Tesla is almost nothing without its main AI product like autonomous driving.” However, canceling more affordable Tesla vehicles and focusing on the Robotaxi model caused some confusion.
Recently, Musk stated that to continue producing AI products at Tesla, he needs to have 25% control of the company. Currently owning 13% of Tesla, Musk’s share could rise to 18% if the compensation package approved in 2018 is implemented. However, Musk wants either more shares or a new class of shares to secure 25% control.
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In a post on the social media platform X (formerly known as Twitter), Musk confirmed the following message from Tesla: “If Elon receives 25% voting rights, Tesla will be restructured in Texas, and if the compensation package is approved, AI and robotic products will remain at Tesla, and the company will be on its way to becoming the largest in the world.”
This is quite an interesting situation. It is not very common for a CEO of a public company to threaten to stop producing critical products for the company’s success. With this threat, Elon Musk seems to be cornering the shareholders. Currently owning 13% of the company, Musk wants a new compensation package or a new class of shares to achieve 25% control.
If Musk’s demand is accepted, Tesla will be restructured in Texas, and Musk’s desired compensation package will be approved. But if this does not happen, the future of Tesla’s AI and robotic products is in jeopardy. What do you think? You can share your thoughts in the comments section below.
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