Musk Asks for More Tesla Shares to Grow Company's AI
The Facts
Tesla founder Elon Musk on Monday said that he would need a larger stake in the electric vehicle company to feel comfortable growing the business “to be a leader in AI and robotics,” noting that he seeks 25% voting control of Tesla.
The Tesla and SpaceX CEO voiced his request on his social media network X, formerly Twitter, which he bought in 2022 after selling tens of billions of dollars of his Tesla shares. Musk currently owns 13% of Tesla — roughly 411M out of the company’s 3.19B outstanding shares.
The Spin
Narrative A
Elon Musk is holding his own company hostage in order to get his way. Investors have always been wary of Musk’s volatile public persona and brash public statements, and his public demand for 25% control of Tesla does nothing to assuage concerns about the Tesla founder. While Tesla has been successful, it has experienced its worst performance since going public, and Musk is overplaying his hand and harming himself and his company.
Narrative B
Elon Musk is making a very reasonable request in seeking 25% control of the electric vehicle company he founded. Musk is the brains powering Tesla, and he has many plans that can help the company venture into emerging spheres, such as AI. Musk has the leverage, and he should not give Tesla exclusive access to his outside work without fair compensation.
