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 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
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<p class="has-drop-cap">Elon Musk <a aria-label="said (opens in a new tab)" href="https://x.com/elonmusk/status/1746999488252703098?s=20" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">said</a> Monday he would not be comfortable pursuing Tesla’s (NASDAQ: TSLA) <a href="https://tokenist.com/three-big-ai-stocks-to-consider-other-than-nvidia-nvda/" rel="noopener noreferrer nofollow" class="deco-link">artificial intelligence</a> (AI) and robotics ambitions unless he acquired 25% voting control. The carmaker’s shares fell 2.2% in premarket trading Tuesday.&nbsp;</p>
<h3 id="musk-s-tweet-sends-tesla-tumbling-in-the-premarket">Musk’s Tweet Sends Tesla Tumbling in the Premarket&nbsp;</h3>
<p>Shares of Tesla slipped 2.2% in Tuesday premarket trading after automaker’s CEO Elon Musk said he would feel uncomfortable growing the company in AI and robotics without having at least 25% voting control, almost double his current stake.</p>
<blockquote class="wp-block-quote">
 <p>“I am uncomfortable growing Tesla to be a leader in AI &amp; robotics without having ~25% voting control. Enough to be influential, but not so much that I can’t be overturned.”</p> <cite>– Musk wrote in the tweet. </cite>
</blockquote>
<p>The billionaire said that unless he owned such a significant portion of the stock, he “would prefer to build products outside of Tesla.”</p>
<p>Musk, who owns roughly 13% of Tesla stock, faces a lawsuit over a compensation package he received in the past. Notably, the automaker’s shareholder, Richard Tornetta, sued Musk and the board in 2018, alleging the CEO used his dominance over the board to acquire a substantial compensation package that did not require him to work at the company full-time.&nbsp;</p>
<p>The businessman said there was no dispute with the board over his new compensation package on X, adding that the pending lawsuit was holding back the talks.&nbsp;</p>
<blockquote class="wp-block-quote">
 <p>“I should note that the Tesla board is great. The reason for no new “compensation plan” is that we are still waiting for a decision in my Delaware compensation case. The trial for that was held in 2022, but a verdict has yet to be made.”&nbsp;</p> <cite>– he wrote in the post. </cite>
</blockquote>
<p>In another post on X, Musk claimed he would be open to adopting a duar-class share structure to attain 25% voting control. However, he was told it was impossible following Tesla’s initial public offering (IPO).&nbsp;</p>
<p>Firms employing dual-class structures issue multiple share types with varying voting rights. Typically, founders or early investors hold shares with greater voting influence, while other shareholders possess shares with diminished voting power.</p>
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<h3 id="tesla-trails-as-the-weakest-performer-among-the-magnificent-seven-stocks-in-2024">Tesla Trails as the Weakest Performer Among the Magnificent Seven Stocks in 2024</h3>
<p>Tesla’s premarket dip is set to deepen the carmaker’s stock declines it suffered since the start of 2024. Tesla is the only Magnificent Seven company with a negative year-to-date performance.</p>
<p>The stock is down nearly 12% since January 1 as challenges for the world’s largest electric vehicle (EV) maker mount. The company was forced to <a href="https://tokenist.com/tesla-slides-premarket-as-ev-maker-plans-to-recall-1-6-million-cars/" rel="noopener noreferrer nofollow" class="deco-link">recall 1.6 million vehicles</a> due to a software issue earlier in the month. More recently, Tesla had to <a href="https://tokenist.com/tesla-shares-dip-after-production-halted-as-red-sea-conflict-escalates/" rel="noopener noreferrer nofollow" class="deco-link">halt</a> most of the production at its factory near Berlin due to shipping disruptions caused by the recent <a href="https://tokenist.com/brent-up-1-5-as-oil-prices-rise-after-tensions-heat-up-in-the-red-sea/" class="deco-link" rel="noopener noreferrer nofollow">Red Sea conflict</a>.&nbsp;</p>
<p>Moreover, the automaker has also lost its position as the leading EV&nbsp; manufacturer to its Chinese competitor, BYD. After <a aria-label="registering (opens in a new tab)" href="https://www.cnbc.com/2023/10/18/tesla-tsla-earnings-q3-2023.html" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">registering</a> a notable profit margin decline in Q3, <a href="https://tokenist.com/wall-street-bullish-on-magnificient-seven-in-2024-except-for-tesla/" rel="noopener noreferrer nofollow" class="deco-link">analysts expect</a> Tesla to continue facing challenges this year, primarily due to the challenges that its core EV business and the broader auto industry will likely face.&nbsp;</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<p><em><strong>Do you expect Tesla stock to continue a downtrend in the coming months, or is this just a temporary setback? Let us know in the comments below.</strong></em></p>
<p><em>Disclaimer: The author does not hold any securities discussed in the article.</em></p>
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/tesla-shares-slide-in-premarket-after-musk-talks-about-ai-plans-on-x/">Tesla Shares Slide in Premarket After Musk Talks About AI Plans on X</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Tesla Shares Slide in Premarket After Musk Talks About AI Plans on X

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