Elon Musk, the chief executive of Tesla, shocked investors by demanding that the company’s board give him shares worth over $80 billion if they want him to continue developing products based on artificial intelligence.
In a surprising move, Mr. Musk said late Monday on X, the social media site he owns, that he required a 25 percent ownership stake in Tesla in order to prevent takeovers and have enough control of the company as it works on robots and other artificial intelligence technology.
Mr. Musk stated that if his demands weren’t met, he would pursue other ventures outside of Tesla. However, Tesla owns the businesses currently being developed, such as a humanoid robot and self-driving technology, and Mr. Musk could not simply walk away with them.
Tesla’s stock market valuation of almost $700 billion is based in part on investors’ belief that Tesla will lead the industry in developing autonomous vehicles and advanced automation for more efficient car manufacturing.
Mr. Musk currently owns 13 percent of Tesla and sold a substantial portion of his stake to finance his acquisition of Twitter. His additional demand for 12 percent of Tesla would be worth $83 billion at the current share price, effectively recouping his investment in Twitter.
He emphasized that he is uncomfortable growing Tesla in A.I. & robotics without having around 25% voting control. Mr. Musk also indicated that the board would take no action until a Delaware judge ruled in a lawsuit brought by a Tesla shareholder.
Tesla did not respond to a request for comment on the matter.
The demand highlights the extent to which Tesla is subject to Mr. Musk’s impulses.
Tesla’s stock has fallen about 11 percent so far this year but is up about 70 percent over the last 12 months.
Mr. Musk did not specify which products he might develop outside the company. He has already started a separate artificial intelligence business called X.AI.
Tesla’s main use of artificial intelligence has come in its Autopilot and Full Self Driving systems, which assist drivers by taking over certain tasks in certain driving situations.
On X, some of Mr. Musk’s fans applauded his demand for a 25 percent stake, saying he earned the money. But others said it was his own fault his stake in the company has fallen.
A stake of less than 15 percent of the company, Mr. Musk said, “makes a takeover by dubious interests too easy.”
