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Elon is feeling poor…
The Tesla CEO claims that he needs a larger stake in the company to remain motivated.
Otherwise, he’ll pursue AI and robotics initiatives in a new startup.
Here is his Tweet…
Elon currently owns 17% of Tesla.
Now he says that he needs to own 25% of the company. And he’s asking for more stock to protect Tesla (see highlighted text).
So, what’s really going on?
IMO it’s largely about Twitter…
Elon owned 22% of Tesla just 2 years ago.
However, he decided on a whim to buy Twitter for $44 billion. And that required him to sell $39 billion of TSLA stock to finance the purchase.
The world’s richest man is now asking Tesla to give him more stock – to restore his ownership to 25%.
This will require giving Elon Tesla stock worth $60 billion.
It sure looks like Elon is asking Tesla shareholders to PAY for his acquisition of Tesla.
Meanwhile, he’s threatening to build AI and robotics outside of Tesla.
This is concerning for Tesla shareholders.
Everyone who is “long TSLA” wants Elon 100% focused on Tesla.
The CEO is already spread thin between Tesla, SpaceX, The Boring Co., Twitter and X.ai (raising $1 billion).
Elon’s request may come across as greedy.
Yet there’s some good news…
Tesla shareholders WANT Elon to be motivated. Right?
Back in 2018, Elon got a monster stock options package worth up to $55 billion.
Elon transformed Tesla into the EV automaker of today. And TSLA shares soared 1,100% in just 6-years.
Could a new stock options plan get Elon re-focuses?
Perhaps.
I’m 100% okay with the board issuing him billions of stock options…
IF Elon can send TSLA shares higher by 10X.
What do you think?
Ian
Be sure to read Monday’s issue.
I’ll explain exactly HOW this works. And why giving more stock to Elon is actually good news for TSLA shareholders.