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ELON MUSK IN PANIC! 13% Stake Leaves Him OPEN TO TAKEDOWN by Activist SHARKS!
Tesla’s Head Honcho Sounds the Alarm: “I’m Vulnerable!”
In a jaw-dropping revelation during Tesla’s recent earnings call, the ever-daring CEO Elon Musk has laid bare his deepest fears—his 13% ownership stake in the EV giant makes him a target for aggressive shareholders poised to kick him to the curb! Can you believe it?
“It’s a BIG DEAL! I could be swiftly ousted by these activist sharks if I’m not careful!” Musk exclaimed, clearly rattled. Mark your calendars, folks—the upcoming shareholders meeting is set for November 6, and Musk is desperate for a solution!
Is Musk’s Control Slipping Away?
With his stake currently worth a staggering $139 billion, Musk is itching for MORE! He wants at least 25% ownership to hold the reins firmly as Tesla charges ahead into the uncharted realms of AI and robotics. If he gets his way, that could balloon to a mega $267.5 billion, dwarfs the stakes held by institutional titans like Vanguard and BlackRock!
But hold your horses—activist investors are circling! Musk has voiced fears that these money-hungry vultures could steer Tesla off-course, prioritizing short-term gains over long-term success.
SUPERMAJORITY VOTING Big Enough to Keep ‘Em At Bay!
Fear not—Tesla currently has a defensive game plan against activist antics! The company’s bylaws dictate a supermajority vote requirement, meaning they need a whopping 66.67% support from shareholders to pass any votes. But wait—there’s more! Tesla promised to abolish this hurdle last year, but apparently, there hasn’t been enough investor enthusiasm to pull it off!
And guess what? They recently granted shareholders some power with proxy access rights! Any shareholder holding 3% or more for over three years can now nominate directors to the board. But that’s still a whopping $20 billion stake to play with!
Money Talks—But Activist Investors Walk!
Activist investors must reveal their stakes once they hit 5%. That’s about $30 billion for Tesla! Just to give you context, legendary activist investor Nelson Peltz made waves at Disney with a measly $3.5 billion stake—just imagine the ruckus Tesla could face!
The clock is ticking for Musk, and time isn’t on his side. When pressed about his ownership in the earnings call, he pointed to the upcoming shareholder meeting as an opportunity to tackle these “major concerns.”
Can He Keep It Together?
“I should have enough control to steer the ship right, but not so much that I can’t be tossed overboard if I lose my mind!” Musk stated, full of bravado.
As if that wasn’t wild enough, Musk has been working without a salary or bonus for years. His moonshot pay package was once valued at an eye-popping $56 billion, though it faced legal hiccups. Now his compensation remains a hot topic as investors are left high and dry without clear updates.
Tesla’s Financial Rollercoaster Continues!
On the finance side, Tesla reported mixed results, with revenue plummeting 12% year-over-year to just $22.5 billion—its worst in a decade! Operating income plunged a staggering 42%, yet they still clocked a profit of $1.2 billion. However, free cash flow took a nosedive of 89%!
And while deliveries fell by 13%, the company still made headlines by launching its much-buzzed-about Robotaxi pilot in Austin and unveiling a flash new diner and drive-in theater in Hollywood!
What’s Next for Musk & Tesla?
While execs dodged questions about potential investments in Musk’s xAI or his politics affecting Tesla’s brand, the pressure is mounting! Shareholders are clamoring for clarity on how to separate Tesla from Musk’s personal drama.
“Freedom of speech is one thing,” a concerned shareholder quipped, “But what’s the board doing to distance Tesla from the antics of our CEO?”
As the stakes grow higher, one question remains—can Musk keep the lock on Tesla’s steering wheel, or will he crash and burn? Buckle up, folks, this ride is just getting started!
photo credit: fortune.com
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