Elon Musk, the CEO of Tesla, is determined to expand the company’s horizons beyond the realm of automobile manufacturing, but to do so, he believes he needs to gain more control over the company. Recently, Musk expressed his unease with the growing leadership in AI and robotics at Tesla, stating that unless he is granted an additional 12 percent ownership, increasing his total stake to 25 percent, he will be hesitant to further develop these technologies.
Musk has even questioned the involvement of large institutional investors, such as Fidelity, who hold significant stakes in Tesla, but seemingly show little interest in actively participating in the company. In his opinion, their lack of engagement is puzzling and hinders Tesla’s ability to reach its full potential.
Surprisingly, despite being primarily known for its electric vehicles, automotive activities accounted for a massive 95 percent of Tesla’s revenues in 2022. However, Musk desires a shift in this trend and aims to increase his influence by reversing his trend of selling billions of dollars of Tesla shares in recent years.
In order to have a greater say in the company’s decisions, Musk intends to establish a dual-class voting structure similar to that of Facebook, where CEO Mark Zuckerberg wields significant control. Unfortunately, such a restructuring would be illegal due to regulations imposed after Tesla’s initial public offering.
Musk has showcased Tesla’s cutting-edge robotics capabilities in the past, even unveiling a demo of the company’s latest robot iteration. Yet, concerns have arisen regarding Musk’s relationship with Tesla’s board. Some reports have alleged possible drug-related issues, while others highlight the declining stock value and shrinking profit margins of the company under his leadership.
Questions have also been raised about Musk’s allocation of resources and staff, particularly his focus on his social media network and other ventures like SpaceX. Lawsuits are ongoing, tackling topics such as Musk’s excessive compensation package and allegations of breach of fiduciary duty by both him and the board.
All of these factors are hampering Tesla’s progress, raising doubts about the company’s future. As Elon Musk continues to push for increased control, the outcome remains uncertain. However, one thing is clear – Tesla’s growth and success are currently hanging in the balance.
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