No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Wednesday, October 1, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Business

Elon Musk wants more control of Tesla so activist investors can’t boot him—but not so much the board can’t fire him if he goes ‘crazy’

by TheAdviserMagazine
2 months ago
in Business
Reading Time: 4 mins read
A A
Elon Musk wants more control of Tesla so activist investors can’t boot him—but not so much the board can’t fire him if he goes ‘crazy’
Share on FacebookShare on TwitterShare on LInkedIn



Tesla CEO Elon Musk just confessed that he thinks his 13% ownership stake in the electric vehicle manufacturer leaves him vulnerable to activist shareholders who could move to oust him from the $1 trillion company. Still, he admitted he shouldn’t have so much control over Tesla that the board can’t fire him if he goes “crazy,” he said during an earnings call on Wednesday. 

“It is a big deal—I don’t want to find I have so little control I can be easily ousted by activist shareholders,” Musk said. “That is a major concern to me as I’ve mentioned in the past and I hope that is addressed at the upcoming shareholders meeting.”

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.

Unless that is the case, I would prefer to build products outside of Tesla. You don’t seem to understand…— Elon Musk (@elonmusk) January 15, 2024

Musk owns 13% of Tesla, a stake currently valued around $139 billion. He has previously stated he wants to own 25% of the electric vehicle manufacturer as it further expands into AI with unassisted Full Self Driving and robotics. Such a stake would be worth about $267.5 billion and would eclipse holdings by large institutional investors in Tesla such as Vanguard and Blackrock. Musk has worried in the past about the influence of activist investors or proxy advisory firms steering Tesla down the wrong long-term path at the expense of short-term pressures. 

However, Tesla currently maintains a defensive position against activists. Its bylaws call for what is termed a supermajority vote requirement, meaning shareholder votes must achieve support from two thirds of all outstanding shares (66.67%) rather than a simple 50% majority in order to pass. The board committed last year to Tesla shareholders that it would eliminate the supermajority vote requirement, but it hasn’t been able to muster enough investor participation. 

Tesla amended its bylaws in 2023 to provide shareholders with proxy access rights, meaning a shareholder or group of shareholders owning 3% or more of Tesla for at least three years can nominate directors to Tesla’s board. A stake that size would be valued at more than $20 billion. Securities and Exchange Commission rules require activist investors to disclose their stakes in company stock once they reach 5%, which is also the point where an activist can typically gain credibility with the board. A 5% stake in Tesla is worth more than $30 billion. In comparison, legendary activist investor Nelson Peltz took on the Walt Disney board after building a stake valued at about $3.5 billion at its peak. Activist investors often typically target small-cap publicly traded companies. 

Tesla did not immediately respond to a request for comment. 

Musk shared his view on his ownership stake in response to an analyst’s question about how comfortable the CEO was in evolving Tesla in new directions with only the 13% stake. Musk pointed the annual shareholder meeting, which will be held November 6, as a potential issue to get aired out then. 

“I think that, as I’ve mentioned before, I think my control over Tesla should be enough to ensure that it goes in a good direction, but not so much control that I can’t be thrown out if I go crazy,” he said. 

Musk has been working without a base salary or annual bonus for years, after the Tesla board granted him a moonshot pay package once valued as high as $56 billion—the highest for a publicly traded CEO. However, that pay package was twice rescinded by a judge and Tesla has announced it formed a board committee to hash out next steps. With the delay in Tesla’s annual shareholder meeting, the company has not yet published a proxy report to shareholders, which typically includes executive compensation disclosures. 

Tesla reported mixed results in its second quarter financials on Wednesday. Revenue declined 12% year-over-year to $22.5 billion, its worst revenue performance in the past decade. Operating income dropped 42% year-over-year to under $1 billion, although Tesla was still profitable with $1.2 billion in GAAP net income. Meanwhile, free cash flow cratered 89% year-over-year to $146 million, compared to $1.3 billion during the same quarter last year. 

Deliveries were down 13% to 384,122, although there were some major developments noted. 

Tesla launched its much-ballyhooed Robotaxi pilot in Austin, and it boosted its AI training capacity. Separately, Tesla opened a new diner and drive-in theater at a mega charging station in Hollywood this week. 

Tesla executives did not address speculation about a Tesla investment in Musk’s xAI, nor did they address questions from retail investors about Musk’s involvement in politics and its impact on Tesla’s value.

Retail investors post questions on an open platform for Tesla shareholders called Say in advance of the earnings releases. Many related to Musk had to do with his compensation and the board’s plan to oversee Musk’s future political moves. 

“Elon the person has freedom of speech,” wrote one shareholder representing 47,000 shares. “The brand ambassador of Tesla does not. What is the board doing to distance Tesla from the private actions of its CEO?”



Source link

Tags: activistboardBootControlcrazyElonFIREhimbutinvestorsMuskTesla
ShareTweetShare
Previous Post

Where to Go Next? Try a Second City

Next Post

Elon Musk says Tesla will start adding vehicles it doesn’t own into its robotaxi network next year

Related Posts

edit post
Lyft CEO on the time Bill Gates told him he was making ‘the stupidest decision I’ve ever heard anyone made’

Lyft CEO on the time Bill Gates told him he was making ‘the stupidest decision I’ve ever heard anyone made’

by TheAdviserMagazine
October 1, 2025
0

Before David Risher was tasked with scripting a “comeback story” for ride-sharing company Lyft, he made a career move so...

edit post
AI godfather warns humanity risks extinction by hyperintelligent machines with their own ‘preservation goals’ within 10 years

AI godfather warns humanity risks extinction by hyperintelligent machines with their own ‘preservation goals’ within 10 years

by TheAdviserMagazine
October 1, 2025
0

The so-called “godfather of AI”, Yoshua Bengio, claims tech companies racing for AI dominance could be bringing us closer to...

edit post
Conagra Reaffirms Outlook Even As Tariffs Add To Inflation

Conagra Reaffirms Outlook Even As Tariffs Add To Inflation

by TheAdviserMagazine
October 1, 2025
0

Conagra Brands Inc. (NYSE:CAG) on Wednesday posted first-quarter fiscal 2026 results that topped Wall Street expectations but showed year-over-year declines....

edit post
US markets regulators start shuttering as government shutdown cuts federal funding

US markets regulators start shuttering as government shutdown cuts federal funding

by TheAdviserMagazine
October 1, 2025
0

U.S. market regulators began the process of furloughing workers on Wednesday as the federal government shut down after Congress failed...

edit post
I’m the CEO of an AI startup that finds blind spots in visual data. If missed, it can cripple your AI models

I’m the CEO of an AI startup that finds blind spots in visual data. If missed, it can cripple your AI models

by TheAdviserMagazine
October 1, 2025
0

Every company wants to make breakthroughs with AI. But if your data is bad, your AI initiatives are doomed from...

edit post
SIPs for first-timers, lumpsums for veterans in JioBlackRock Flexi Cap Fund: Rishi Kohli

SIPs for first-timers, lumpsums for veterans in JioBlackRock Flexi Cap Fund: Rishi Kohli

by TheAdviserMagazine
October 1, 2025
0

Amid current economic indicators and shifting geopolitical dynamics, Rishi Kohli, CIO of JioBlackRock Mutual Fund, recommends that first time investors...

Next Post
edit post
Elon Musk says Tesla will start adding vehicles it doesn’t own into its robotaxi network next year

Elon Musk says Tesla will start adding vehicles it doesn’t own into its robotaxi network next year

edit post
PUMP crashes over 50% post-ICO as founder says airdrop not coming soon

PUMP crashes over 50% post-ICO as founder says airdrop not coming soon

  • Trending
  • Comments
  • Latest
edit post
What Happens If a Spouse Dies Without a Will in North Carolina?

What Happens If a Spouse Dies Without a Will in North Carolina?

September 14, 2025
edit post
California May Reimplement Mask Mandates

California May Reimplement Mask Mandates

September 5, 2025
edit post
Who Needs a Trust Instead of a Will in North Carolina?

Who Needs a Trust Instead of a Will in North Carolina?

September 1, 2025
edit post
Does a Will Need to Be Notarized in North Carolina?

Does a Will Need to Be Notarized in North Carolina?

September 8, 2025
edit post
DACA recipients no longer eligible for Marketplace health insurance and subsidies

DACA recipients no longer eligible for Marketplace health insurance and subsidies

September 11, 2025
edit post
‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

September 9, 2025
edit post
Lyft CEO on the time Bill Gates told him he was making ‘the stupidest decision I’ve ever heard anyone made’

Lyft CEO on the time Bill Gates told him he was making ‘the stupidest decision I’ve ever heard anyone made’

0
edit post
Trump, Comey, and the Long History of the Unelected Government

Trump, Comey, and the Long History of the Unelected Government

0
edit post
Telegram to Let Users Trade Tokenized U.S. Stocks Directly in Its Crypto Wallet

Telegram to Let Users Trade Tokenized U.S. Stocks Directly in Its Crypto Wallet

0
edit post
Government Shutdown and Seniors: What You Need to Know About Social Security and Healthcare

Government Shutdown and Seniors: What You Need to Know About Social Security and Healthcare

0
edit post
9 Ways I Extend the Shelf Life of My Grocery Stockpile

9 Ways I Extend the Shelf Life of My Grocery Stockpile

0
edit post
Trump peace plan boosts Tel Aviv stocks

Trump peace plan boosts Tel Aviv stocks

0
edit post
Lyft CEO on the time Bill Gates told him he was making ‘the stupidest decision I’ve ever heard anyone made’

Lyft CEO on the time Bill Gates told him he was making ‘the stupidest decision I’ve ever heard anyone made’

October 1, 2025
edit post
Government Shutdown and Seniors: What You Need to Know About Social Security and Healthcare

Government Shutdown and Seniors: What You Need to Know About Social Security and Healthcare

October 1, 2025
edit post
Telegram to Let Users Trade Tokenized U.S. Stocks Directly in Its Crypto Wallet

Telegram to Let Users Trade Tokenized U.S. Stocks Directly in Its Crypto Wallet

October 1, 2025
edit post
9 Ways I Extend the Shelf Life of My Grocery Stockpile

9 Ways I Extend the Shelf Life of My Grocery Stockpile

October 1, 2025
edit post
Dollar claws back losses from U.S. government shutdown, turns higher

Dollar claws back losses from U.S. government shutdown, turns higher

October 1, 2025
edit post
Financial Planning Doesn’t Have to Be Intimidating

Financial Planning Doesn’t Have to Be Intimidating

October 1, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • Lyft CEO on the time Bill Gates told him he was making ‘the stupidest decision I’ve ever heard anyone made’
  • Government Shutdown and Seniors: What You Need to Know About Social Security and Healthcare
  • Telegram to Let Users Trade Tokenized U.S. Stocks Directly in Its Crypto Wallet
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.