Elon Musk Is Worried About Being Ousted From Tesla, Plans To Increase His Holdings

Main Image
  • Like
  • Comment
  • Share

In a surprising turn of events, Tesla’s CEO and the world’s richest man, Elon Musk, has expressed doubts about being ousted from the company. According to a report by Bloomberg, Musk talked about his holdings in the company and how it might pose a threat to his position.

Musk Believes His 13 Percent Stake Is Relatively Small

At the moment, Musk holds about 13 percent of Tesla’s shares, the world’s most valuable car manufacturing company. However, the billionaire believes this is a relatively small percentage, and the shareholder advisory firms can vote him out. The current CEO mentions Glass Lewis and Institutional Shareholder Services, saying they have unconventional ideas.

Musk Intends To Double His Stake At Tesla

To maintain control and influence over the board and the company, Musk says about doubling his stake at Tesla. This means he intends to increase his holding from 13 percent to about 25 percent. On Wednesday, during an earnings call, Musk suggested creating a dual class of shares. For those catching up, several companies, like Meta Platforms, already have a dual class of shares in place.

Tesla CEO Might Pursue The Field Of Robots And AI Somewhere Else

Musk’s concerns come after his appeal to Tesla’s board of directors for a stock award. On top of everything else, the billionaire also mentions that he might pursue the fields of AI and robotics elsewhere if he doesn’t get a 25 percent stake in Tesla. According to a Fortune, the company lost more than $90 billion in market valuation in the first two weeks of January.

Moreover, it looks like Musk’s decision to sell his Tesla shares to fund the Twitter acquisition wasn’t the best idea. However, whether the CEO will succeed in changing the share structure and increasing his current stake in the company, and how this will steer the developments in Tesla and the automobile industry in general, is yet to be seen.

You can follow Smartprix on TwitterFacebookInstagram, and Google News. Visit smartprix.com for the most recent newsreviews, and tech guides.

Shikhar MehrotraShikhar Mehrotra
A tech enthusiast at heart, Shikhar Mehrotra has been writing news since college for an undergraduate degree in Journalism and Mass Communication. Over the last four years, he has worked with several national and international publications, including Republic World, and ScreenRant, writing news, how-to explainers, smartphone comparisons, reviews, and list-type articles. When he is not working, Shikhar likes to click pictures, make videos for his YouTube channel, and watch the American sitcom Friends.

Related Articles

ImageApple iPhone 16 Review: Feels And Handles Like A Pro, Minus The Price Tag

It’s that time of the year again when thousands of people are standing in a queue outside Apple Stores to get their hands on a new iPhone. While we would have credited that to Apple’s loyal customers who rush to upgrade every year, we managed to procure an iPhone 16 in the new, eye-catching Ultramarine …

ImageElon Musk offers to buy Twitter at $43Bn after denied seat at Board of Directors

What would you do if a tech juggernaut denies you a seat on its board of members? You attempt to take over the entire company. Well, that’s what Tesla CEO Elon Musk did after he was denied a seat on the board of members with his 9.2% stake. According to a 13D file with the …

ImageElon Musk hits towards making cheap Tesla cars for India

Elon Musk, after the Twitter acquisition, seems in a mood to shake the global automotive market now. The Tesla CEO has hinted at introducing a check Tesla car in the Indian market. At the ongoing G20 summit in Indonesia, Elon Musk said that he is working on an idea of producing cheaper Tesla cars for …

ImageTesla Halts Plans To Enter India Due To Capital Issues: Bloomberg

A few months ago, the most valuable EV brand in the world, Tesla, was planning to invest in India. In April, the company’s CEO, Elon Musk, announced his plans to visit the subcontinent and meet the Indian prime minister, Narendra Modi. Further, it was also speculated that the company’s entry into the country could bring …

ImageTesla Cuts EV Prices In Key Markets, Musk To Visit India Later This Year

Following Elon Musk’s decision to defer his visit to India, Tesla has announced a major price reduction in its key markets. Earlier this month, Musk revealed his plans to visit India with an agenda to meet Prime Minister Narendra Modi and discuss Tesla’s foray into the market. Had everything gone well, the most valuable EV …

Discuss

Be the first to leave a comment.