Elon Musk Seeks Expanded Tesla Control to Oversee AI and Robotics Development

Musk Defends Compensation Package as Necessary for AI Oversight

Elon Musk is defending his proposed $1 trillion Tesla compensation package, arguing it’s essential for maintaining influence over the company’s artificial intelligence and robotics development, according to reports from the company’s quarterly earnings call. The Tesla CEO reportedly stated he wants to ensure he maintains significant oversight as the company advances its robotics initiatives.

Control Concerns Over “Robot Army” Development

During Wednesday’s earnings call, Musk expressed unease about developing advanced robotics without sufficient corporate control, sources indicate. “I just don’t feel comfortable building a robot army here and then being ousted because of some asinine recommendations from ISS and Glass Lewis who have no freaking clue,” Musk stated, referring to proxy advisory services urging investors to reject the pay plan. He characterized these firms as “corporate terrorists,” according to the report.

Compensation Structure and Performance Targets

The proposed compensation package would award Musk up to $1 trillion in Tesla stock if he meets ambitious performance targets, analysts suggest. These reportedly include growing Tesla to an $8.5 trillion market capitalization, representing more than a 500% increase from current valuation. The package would incrementally provide 420 million shares if Musk achieves the company’s growth plans, which reportedly include delivering 20 million Tesla vehicles and operating 1 million robotaxis commercially.

Stake Increase and Voting Influence

If approved, Musk’s stake in Tesla would reportedly increase from 13% to nearly 29%, giving him what he describes as “strong influence” rather than absolute control. “It’s called compensation, but it’s not like I’m going to go spend the money,” Musk added during the call, according to reports. “It’s just, if we build this robot army, do I have at least a strong influence over that robot army?”

Board Rationale and Shareholder Considerations

Tesla’s board announced the executive pay plan in September, stating it would help “retain and incentivize Elon to focus his energies” as the company navigates what they describe as a critical inflection point, the report states. At that time, Tesla’s stock price was down approximately 10% for the year, though it has since rebounded and is now up more than 15% year-to-date, according to market analysis.

Historical Context and Previous Statements

Musk has consistently sought greater control at Tesla, arguing that complex innovations require significant influence over company direction, sources indicate. In early 2024, he reportedly stated on social media platform X: “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.” He added that without such control, he would prefer to develop AI and robotics products outside of Tesla.

Shareholder Vote and Future Implications

The compensation package will face a shareholder vote at Tesla’s annual meeting on November 6. Musk has reportedly conceded that having voting control in the “mid-20s” percent range would provide sufficient influence while allowing shareholders to remove him if necessary. The board has emphasized in shareholder communications that while they believe Musk is essential to Tesla’s success, “changing the world is neither an overnight process nor the work of a single person,” according to their published letter.

References

• https://ir.tesla.com/…/tm252289-4_pre14a-gen.pdf
• https://x.com/elonmusk/status/1747035106257023362?ref_src=twsrc%5Etfw%7Ctwcam…
• https://x.com/elonmusk/status/1746999488252703098
• http://en.wikipedia.org/wiki/Elon_Musk
• http://en.wikipedia.org/wiki/Robot
• http://en.wikipedia.org/wiki/Tesla,_Inc.
• http://en.wikipedia.org/wiki/Robotaxi
• http://en.wikipedia.org/wiki/Proxy_war

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