Elon Musk continues to boost considerations over his management of Tesla as its CEO and one in all its founders, as activist shareholders appear to be a viable risk to the corporate in his eyes.
Musk has voiced considerations over voting management of Tesla and the potential of him being ousted by shareholders who don’t essentially have the corporate’s future in thoughts. As a substitute, they might be trying to oust Musk due to his political views or due to his huge wealth.
We noticed an instance of that as shareholders voted on two separate events to award Musk a 2018 compensation bundle that was earned as Tesla met numerous development targets via the CEO’s management.
Regardless of shareholders voting to award Musk with the compensation bundle on two separate events, as soon as in 2018 and once more in 2024, Delaware Chancery Courtroom Choose Kathaleen McCormick denied the CEO the cash each occasions. At one time, she known as it an “unfathomable sum.”
Musk’s present stake in Tesla stands at 12.8 p.c, however he has an choice to buy 304 million shares, which, if exercised, after taxes, he says, would bump his voting management up about 4 p.c.
Nonetheless, this isn’t sufficient of a stake within the firm, as he believes a roughly 25 p.c possession stake could be sufficient “to be influential, however not a lot that I can’t be overturned,” he mentioned in January 2024.
I’m uncomfortable rising Tesla to be a pacesetter in AI & robotics with out having ~25% voting management. Sufficient to be influential, however not a lot that I can’t be overturned.
Except that’s the case, I would like to construct merchandise outdoors of Tesla. You don’t appear to grasp…
— Elon Musk (@elonmusk) January 15, 2024
Musk’s considerations have been echoed in one other X publish from Thursday, the place he confirmed he has no present private loans towards Tesla inventory, and he reiterated his considerations of being ousted from the corporate by these he has referred to up to now as “activist shareholders.”
The CEO mentioned through the firm’s earnings name in late July:
“That may be a main concern for me, as I’ve talked about up to now. I hope that’s addressed on the upcoming shareholders’ assembly. However, yeah, it’s a massive deal. I need to discover that I’ve acquired so little management that I can simply be ousted by activist shareholders after having constructed this military of humanoid robots. I feel my management over Tesla, Inc. must be sufficient to make sure that it goes in a superb route, however not a lot management that I can’t be thrown out if I am going loopy.”
The X publish from Thursday mentioned:
Simply fyi I don’t have private loans at the moment towards Tesla inventory.
Additionally, the taxes on the choices are ~45%, so web acquire in voting management is extra like 4%.
It’s worrying in that I don’t need to construct tens of millions of robots after which doubtlessly be ousted by activists and…
— Elon Musk (@elonmusk) July 31, 2025
There’s a concern that Musk may finally put his cash the place his mouth is, and if politicians and judges are in a position to restrict his possession stake as they’ve been in a position to do along with his pay bundle, he may finally depart the corporate.
The corporate’s shareholders voted overwhelmingly to approve Musk’s pay bundle. A overwhelming majority of those that voted to get Musk paid nonetheless need him to be working Tesla’s day-to-day operations. With out his steerage, the corporate may face a significant restructuring and would have a vastly new look and thesis.
