Days after the company’s financial results for the third quarter of 2023 fell short of analyst expectations, leading to a nearly 6% decline in after-hours trading, Elon Musk, the CEO of Tesla, reiterated his push for increased control over the voting rights of the company in a blog post on his social media platform X.
Key Points
Musk shared a video of Tesla’s earnings call for the fourth quarter, which took place earlier on the same day. During the call, he expressed concerns about advancing AI technology within Tesla without having more authority, emphasizing the significance of ensuring the responsible development of powerful technology, stating, “Money doesn’t matter if powerful technology goes wrong.”
In the earnings call, Musk outlined the company’s potential to become a leader in artificial intelligence and robotics, highlighting the immense capabilities and influence that could be achieved.
While emphasizing that his intention is not to exert absolute control over the envisioned technological powerhouse, Musk raised apprehensions about the possibility of minimal influence over Tesla and the potential interference by certain investor advisory entities.
Musk highlighted past challenges faced by the company due to activist investors with unconventional proposals, specifically mentioning “Institutional Shareholder Services… I call them ISIS, and Glass Lewis.”
The CEO expressed his readiness to consider a dual-class share structure to secure 25% of the voting rights, ensuring a safeguard in case of unforeseen circumstances, stating, “if I go bonkers, they can’t throw me out.”
Noteworthy Quote
“I’m not interested in learning more about the economy. I just want to be a good servant of very strong technology,” Musk emphasized during the call.
Significant Percentage
Elon Musk currently holds a stake in Tesla amounting to [ppp1]%, excluding additional options, which raises the ownership to 22%.
Additional Insights
In a recent series of articles on X, Musk conveyed his discomfort with expanding Tesla’s role as a leader in AI and technology without securing approximately 25% of the voting power. He emphasized that failure to meet this requirement could lead him to explore product development opportunities outside of Tesla, citing concerns about the vulnerability to takeovers by questionable interests with a voting share below 15%.
