Elon Musk is increasingly concerned about activist shareholders posing a threat to his control as CEO of Tesla. He worries that these shareholders may seek to oust him based on his political beliefs or wealth rather than the company’s interests. While shareholders have approved his substantial compensation packages, a judge has denied these claims calling them excessive. Musk owns 12.8 percent of Tesla, but believes that achieving a 25 percent stake would grant him sufficient influence without risking removal, stating he may prefer to develop products outside Tesla otherwise.
Elon Musk raised concerns about the activist shareholders threatening his control at Tesla, indicating that they may not prioritize the company's future.
Despite receiving approval from shareholders for his 2018 compensation package, Judge Kathaleen McCormick of Delaware Chancery Court denied Musk the funds, labeling them an 'unfathomable sum'.
Musk currently holds 12.8 percent of Tesla but has options to increase this stake, feeling that around 25 percent would allow him enough influence without being overthrown.
Musk expressed discomfort in growing Tesla into a leader in AI and robotics without sufficient voting control, suggesting he might consider building outside of Tesla.
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