Elon Musk, the CEO of Tesla, has recently expressed his discomfort with the idea of Tesla becoming a leader in AI and robotics if he does not have at least 25% of shares in the company. He currently has approximately 13% after selling shares of tens of billions of USD to buy Twitter, which he then renamed to X.
In a tweet, he stated that this level of control is sufficient for influence but not to the extent that he could be overruled. He implied a preference to work on projects outside of Tesla if he cannot have 25%.
He added that owning the current 13% shares is not enough motivation to “show up for work”, referencing other shareholders like Fidelity who currently own a similar amount of shares but are not expected to work.
Musk’s comments raise several concerns regarding CEO responsibilities and shareholder rights in a publicly traded company. Typically, a CEO is expected to act in the best interest of all shareholders and to maintain corporate stability, which includes careful communication to avoid undue effects on share prices.
Musk’s statement could be interpreted by the market as an indication of a potential shift in Tesla’s strategic direction, which might lead to instability and could significantly impact shareholder value. Tesla is currently valued much higher than any other automaker, which implies that there is a premium built into the price that expects it to be more than just an automaker.
The market’s response to such statements by a CEO, especially one with Musk’s influence, can be immediate and substantial. Share prices often react to perceived changes in a company’s future prospects, and Musk’s tweet suggests a possible reluctance to pursue certain avenues of growth without more control, which could lead to volatility in Tesla’s stock.
There is also an impact towards current (and future) Tesla owners, who have previously paid for an expensive Full-Self Driving feature but as of today still cannot use them yet. The FSD option is priced at RM32,000 in Malaysia. Any delay in the development of Tesla’s AI capabilities could delay or potentially prevent these features coming into production usage.
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Boohoo cry me a river. Let me find my tiny violin.
Elon Musk is the best. If he ruled Malaysia, we would be far ahead of Singapore…
Riding Elon a bit too hard there, dont you think?
Elon is good, until he ruined everything.. and he will ruined everything..
His talks has no logic at all.
1. He got less shares because he sold off a chunk of it, no one rob/steal from him. It’s his own action.
2. In order to not be overturned, he will need a 51% share, 25% have no much difference compare to 13%
3. He talked as if he have full control over the company, he can take out a portion of RnD and start a new company with it. Well, Musky guy, with only 13% shares, your decision are OVERTURNED.
4. Like in any corporation, if he want more shares, he need to BUY IT with money. Other shareholders will not give him shares for free because he throws empty threat in X.
5. Lastly, no one force him to work, to be CEO. He choose to be one and complaint other shareholders no “working”
Musky’s being a sulky bully again. Maybe from the lack of substance use, if you believe he really is ’not a trace’ clean like he claimed. Unfortunately he burned far too many bridges and he is now surrounded by sharks waiting for their opportunity to carve his wealth apart.