Elon Musk Demands at Least 25% Ownership in Tesla via a New Compensation Package, Threatens to “Build Products Outside of Tesla”
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Elon Musk famously sold Tesla shares worth billions of dollars in the past few years to pay off his tax liabilities and then to acquire the X social media platform at a nosebleed valuation. Those equity liquidations are now coming back to haunt him.
I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control. Enough to be influential, but not so much that I can’t be overturned.
Unless that is the case, I would prefer to build products outside of Tesla. You don’t seem to understand…
— Elon Musk (@elonmusk) January 15, 2024
Just moments ago, in response to an X post that questioned the need for a new compensation package for the CEO of Tesla, Elon Musk dropped a bombshell when he declared that he was uncomfortable working at Tesla with his current voting power. Bear in mind that the mega-billionaire owns roughly 13 percent of the EV giant, corresponding to around 412 million shares.
Elon Musk elaborated that he had sufficient voting power at Tesla to be "influential" but not enough to prevent being "overturned" on occasion. The ultra-billionaire then laid down the gauntlet, threatening to "build products outside of Tesla" should the EV giant's board not acquiesce to his demands.
Bear in mind that Tesla underwent a trial in Delaware in 2022, where some shareholders asserted that Elon Musk's 2018 compensation plan should be voided by the court as it was a result of sham negotiations and dictated by Musk himself. While the trial has concluded, a verdict in this case is yet to be delivered.
I should note that the Tesla board is great. The reason for no new “compensation plan” is that we are still waiting for a decision in my Delaware compensation case. The trial for that was held in 2022, but a verdict has yet to be made.
I put “compensation plan” in quotes,…
— Elon Musk (@elonmusk) January 15, 2024
In a
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