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.

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.

In a subsequent X post, Elon Musk added that with sub-15% of the voting rights in Tesla, the bar to override him is “too easy.”

Of course, today’s fireworks come as the usually effervescent hype around Tesla seems to have lost some of its patina. As recently admitted by Gary Black, a known Tesla bull, Elon Musk’s vision of millions of connected robotaxis is not about to be realized anytime soon. Instead, the focus has now turned toward the “supervised FSD” capability of Tesla’s Autopilot ADAS.

Meanwhile, as the EV market cools, hybrids and ICE vehicles are all set to regain some of their lost market share.

Hopefully, the much-anticipated “halo effect” from the sale of Cybertruck will start materializing in the near future, insulating Tesla from a deeper demand-related malaise in 2024.

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