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In the run-up to the annual general meeting (AGM) of Tesla's shareholders, one that will likely prompt Elon Musk to either ratify or abandon his association with the world's premier EV manufacturer, Wall Street is choosing to take a generous view of Musk's desire to obtain a 25 percent voting control over Tesla.
For the benefit of those who might not be aware, Elon Musk has staked his commitment to Tesla as a bargaining chip to convince shareholders to approve a $56 billion pay package to replace the one recently voided by the Delaware Court of Chancery.
Bear in mind that Musk currently owns roughly 13 percent of Tesla, corresponding to around 412 million shares. The Delaware Chancery Court's punitive action voided Musk's 304 million unexercised stock options that entitled him to around 9 percent of Tesla's 3.2 billion outstanding common shares. This means that, before the court's judgment, Musk retained a pathway toward a 24 percent stake in Tesla.
Of course, in recent weeks, Elon Musk has clearly outlined his desire for Tesla's board to structure his new compensation package such that it would allow him a pathway toward a 25 percent voting control over the EV manufacturer, threatening to "build products outside of Tesla" should the board not acquiesce to his demands.
Exactly
— Elon Musk (@elonmusk) June 11, 2024
Now, Wall Street titans appear to be taking a generous view of Elon Musk's wishes, as evidenced by the detailed quotes of Tesla's new head of IR, Travis Axelrod, within JP Morgan's new investment note:
"... this desire is motivated primarily by the wish to protect humanity from the potentially negative implications of imprudent or improper use of Al technology."
Axelrod's quote within the investment note continues:
"Mr. Musk is focused on having a strong enough voice at the company (via control of a sufficient number of voting shares) such that he could ensure a proper governance structure around the use of Al, given the not unreasonable assumption that Al could surpass human-level intelligence in the next several years."
Elon Musk and Tesla are attempting to project his desire to obtain a greater control over the EV manufacturer as part of an expansive altruistic campaign that is in the best interest of the humanity at large. For now, Wall Street appears willing to go along with this view, bestowing an additional patina of legitimacy to Musk's ambitions.
Of course, Elon Musk is one of the very few people on the planet powerful enough to reign in the unbridled proliferation of AI. But whether he continues to adhere to this lofty goal is an entirely different question.
Assuming that Musk's assertions are correct, it seems that the ultimate salvation of humanity from our future AI overlords now rests in the hands of Tesla's shareholders, who can make or break this paradigm by either approving or rejecting Elon Musk's gigantic pay package on Thursday.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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