Elon Musk Seeks Increased Voting Control in Tesla for an Important Reason

By Kevin Armstrong
Musk talks about arrangements with Tesla
Musk talks about arrangements with Tesla
Not a Tesla App

Tesla CEO Elon Musk has opened a can of worms with a four-word post on X. On January 13, he posted, “That would be nice.” The message popped up while Tesla shareholders, fans, critics, and haters discussed the company on the social media platform. Two days later, Musk added more details and context to the discussion.

Background and Context is Important

Unlike mainstream media outlets suggesting Musk went on an unprompted compensation rant, the CEO was merely further explaining himself to shareholders. On the 13th, an X user expressed concerns about Musk's apparent lack of Tesla engagement. Amy (_SFTahoe) highlighted that Musk hasn’t had a new incentive plan since completing his 2018 compensation milestones in 2022. Amy argued for significant goals and rewards for Musk, underscoring that mere share ownership isn't enough motivation and that Musk deserves a plan that matches his contributions and ambitions in AI, automation, and space exploration. That is when Musk chimed in with the four words.

Two days later, Musk gave more details about his arrangement with Tesla. He expressed his discomfort with his current level of influence in the company. Musk stated his preference for approximately 25% voting control within Tesla, arguing that this level of influence is substantial but not overwhelming. He mentioned, "I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control. Enough to be influential, but not so much that I can’t be overturned." Vanguard controls more than 13% through its institutional and mutual fund holdings.

Holder

Shares

Date Reported

% Out

Value

Elon Musk

411,000,000

NA

13%

91,000,000,000 (est)

Vanguard Group Inc

225,940,011

Sep 29, 2023

7.11%

49,456,008,869

Vanguard Total Stock Market Index Fund

84,006,460

Sep 29, 2023

2.64%

18,388,173,978

Vanguard 500 Index Fund

66,358,271

Sep 29, 2023

2.09%

14,525,161,898

Vanguard Growth Index Fund

23,413,536

Sep 29, 2023

0.74%

5,124,988,880

Vanguard Institutional Index Fund-Institutional Index Fund

18,528,798

Sep 29, 2023

0.58%

4,055,768,582

Share Structure and Compensation

Musk, who owns about 13% of Tesla, said he would consider building products outside Tesla unless he secures the desired voting control. He suggested a dual-class share structure as a potential solution but noted the challenges of implementing such a system post-IPO in Delaware. Musk's posts indicated no ongoing feud with the Tesla board, which he praised, and mentioned the delay in establishing a new compensation plan due to the pending Delaware compensation case.

Musk's focus on AI and robotics is a significant part of Tesla's future direction. He has touted the company's advancements in these areas, including developing the humanoid robot Optimus. Musk believes that AI and robotics are integral to Tesla's value, even more so than its automotive segment.

The Financial and Legal Context

Musk's statements come amidst financial and legal challenges. He sold a significant portion of his Tesla shares in 2022 to finance his acquisition of Twitter, which he renamed X. This sale reduced his stake in Tesla and his voting power. Additionally, Musk is involved in a lawsuit in Delaware over his previous compensation package, which is under scrutiny for its size and the influence Musk had in securing it.

As Tesla awaits the decision in the Delaware compensation case, Musk's desire for increased voting control remains a central topic. The outcome of this case could influence the future structure of Tesla's leadership and Musk's role in the company. With the Q4 earnings report approaching, Tesla's strategic direction in AI and robotics and Musk's influence will be scrutiny.

Moving Forward

Musk's efforts to balance his various roles at Tesla, SpaceX, and X continue to be a point of discussion. His leadership style, often characterized by ambitious goals and unconventional approaches, has both been praised and criticized in the public and financial spheres.

Despite focusing on voting control and compensation, Musk's ambition for Tesla goes beyond financial incentives. His vision for Tesla involves significant advancements in AI and robotics, aiming to position the company at the forefront of technological innovation. This perspective aligns with Musk's broader goals of advancing human progress through technology.

Tesla Reduces Sentry Mode Power Usage in Update 2024.38

By Karan Singh
Not a Tesla App

As part of Tesla software update 2024.38.4, Tesla has finally included updates to Sentry Mode to reduce its power consumption.

Sentry Mode is part of Tesla’s security system that keeps the vehicle sensors and cameras on to detect, record, and then inform the owner about suspicious activity. You can read more about it, including how much power it consumes, in our guide covering Tesla Sentry Mode.

Sentry Mode Battery Drain

Sentry Mode keeps the vehicle awake and continuously processes data from the vehicle’s eight cameras. However, due to the vehicle’s architecture and processing the multiple video feeds, Sentry Mode consumes a significant amount of power. Over a 24-hour period, an average Model 3 or Model Y will typically experience a battery drain of about 7-14% with Sentry Mode enabled, or roughly about one mile per hour.

While Sentry Mode is a great security feature, owners often have to decide whether the loss of range is worth the added security. Sentry Mode also becomes an issue when leaving your vehicle parked for an extended period of time, such as at the airport.

Sentry Mode Improvements

Tesla announced earlier this year that they were bringing significant efficiency improvements to Sentry Mode by cutting power usage by 40%.

Update 2024.38 is bringing about those changes. Tesla is changing the way its onboard computers process video to make Sentry Mode use much more efficient. Right now, the vehicle needs to keep its FSD and MCU (infotainment) computers on to process videos from the vehicle’s cameras. However, that’s changing with some architectural improvements in update 2024.38. We’ll have a much closer look at what’s changing in an article later this week.

This change will arrive first with the Cybertruck in update 2024.38.4 and later. According to our source, it will also be available for other models in a future update, but Tesla is starting with the Cybertruck first.

Since most Cybertrucks have FSD included as part of the Foundation Series, they’re on FSD-specific updates, meaning that the number of Cybertrucks with update 2024.38 is extremely small. Once it becomes more widely available, we should be able to get some numbers to see how close Tesla got to its 40% power reduction.

Tesla Now Shows Occupancy Status for Third-Party Chargers

By Karan Singh
@Matty06 on X

When navigating to or looking at a Supercharger in the Tesla app or in the vehicle, you can view how busy a Supercharger station is. However, viewing how busy a Supercharger is was limited to Tesla’s charging stations.

However, Tesla has now begun showing occupancy status at select third-party chargers in Europe. As part of the Qualified Third-Party Charger Program in Europe, Tesla began displaying third-party chargers on the vehicle’s maps.

Third-Party Occupancy

The third-party occupancy system appears when you tap a charger to navigate to. It provides the total number of stalls and the number of stalls currently occupied. In addition, it also provides the maximum charge speed of the stations located at the site. While not as seamless as Tesla’s prediction-based system used for Superchargers, which shows how many vehicles are actively driving to a particular Supercharger, it’s still a premium experience backed by Tesla’s high bar for its third-party program.

In addition, while you’re in map view, third-party charger sites show up as a grey bubble, with an indicator showing the number of free stalls currently available. That’s similar to how Superchargers are currently displayed on the map - though those are displayed in red. You can navigate to and precondition for these qualified third-party charging sites, which makes them an excellent option in areas where Supercharging isn’t available yet.

The third-party charger in grey.
The third-party charger in grey.
@Matty06 on X

Qualified Third-Party Charger Program

Although Tesla’s third-party charging program is currently limited to the Chinese and European markets, it enables third-party charging providers to display their locations directly within Tesla’s navigation system. However, to participate, providers must meet certain criteria over a 60-day period:

  • At least one compatible charging connector

  • Frequent use by Tesla drivers, averaging at least one session every four days

  • An average charge success rate of 90% or higher

This criterion isn’t actually very strict, given that Tesla aims for and achieves much higher numbers with their own Supercharger program.

Third-party charging stations will be removed from Tesla’s navigation system if any of the following conditions are met over a 14-day period:

  • No charge sessions detected

  • Average charge success rate falls below 70%

Tesla has opened the Qualified Third-Party Charger program in North America, so we hope to see this functionality roll out in North America alongside third-party NACS stations.

Reliable charging stations help sell electric vehicles. In fact, Tesla Superchargers are loved by all EV owners, regardless of the brand they own. Tesla’s commitment to ease of use and reliability is unmatched in the EV charging space.

Thanks to Daniel Albrecht for letting us know of this new feature.

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