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Elon Musk raises concerns about Tesla control

Musk fears his 13% stake makes him vulnerable to activist investors ahead of the shareholders meeting.

July 24, 2025 at 12:11 AM

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’

Musk expresses concerns over his control amid potential activist investor threats.

Elon Musk seeks control at Tesla to protect against activist investors

During a recent earnings call, Elon Musk revealed his anxiety over his 13% ownership stake in Tesla, fearing it leaves him vulnerable to activist shareholders. He emphasized the importance of having enough voting influence to steer the company without being at risk of being ousted. Musk hopes to address this issue at the upcoming shareholder meeting in November, where he aims to gain more control without risking complete oversight by the board. Despite these concerns, Tesla's current bylaws include protections against activist investors, requiring a supermajority vote for major changes. However, Tesla has struggled to eliminate these barriers due to low investor participation. In light of these dynamics, Tesla's financial performance showed mixed results, with a significant drop in revenue and operating income, raising further questions among shareholders about Musk's leadership and the company's direction.

Key Takeaways

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Musk fears being ousted by activist investors due to his 13% ownership stake.

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Aiming for 25% ownership to maintain influence in Tesla's direction.

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The board's commitment to change supermajority requirements faces challenges.

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Tesla's financial results raise concerns about leadership effectiveness.

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Upcoming shareholder meeting is crucial for Musk's control discussions.

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Activist investors typically seek influence with stakes over 5%.

"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 articulates his fears about losing control amidst shareholder pressures.

"I think my control over Tesla should be enough to ensure that it goes in a good direction, but not so much that I can’t be thrown out if I go crazy."

Musk emphasizes the need for both influence and accountability as he discusses his ownership stake.

The balancing act of leadership control and shareholder interests presents ongoing challenges for Musk and Tesla. While Musk’s concerns about activist investors reflect broader anxieties in the corporate world, they also illuminate a power struggle between innovation and accountability. Striking the right balance is critical for Tesla as it continues to expand into AI and robotics. Musk's desire to maintain influence might prompt strategic shifts, but pushing too hard could alienate key investors, jeopardizing both trust and investment. The landscape ahead resembles a tightrope walk, with potentially significant implications for Tesla's future.