Elon Musk has created a “firestorm” at Tesla with his recent comments about AI technology, according to an expert.
The billionaire businessman recently revealed that he’s reluctant to develop AI technology under Tesla’s current share structure. Dan Ives, an analyst at Wedbush Securities, believes it’s created an issue within the company,
“If Musk ultimately went down the path to create his own company [separate from Tesla] for his next-generation AI projects, this would clearly be a big negative for the Tesla story,” the industry expert wrote.
Ives ultimately expects that the situation will be resolved. But in the short term, he believes it will be unsettling for people at Tesla.
“We also believe Musk having a back-and-forth about such an important issue over X is far from ideal for the investment community,” he added.
Earlier this month, Musk admitted that he feels “uncomfortable” growing AI technology at Tesla under current circumstances.
The CEO of Tesla Motors revealed that the current share structure of the electric car company makes him reluctant to turn it into a “leader in AI and robotics.”
“I am uncomfortable growing Tesla to be a leader in AI and robotics without having about 25 percent voting control. Enough to be influential, but not so much that I can’t be overturned,” Musk explained in a lengthy post on X.
“Unless that is the case, I would prefer to build products outside of Tesla. You don’t seem to understand that Tesla is not one startup, but a dozen. Simply look at the delta between what Tesla does and GM. As for stock ownership, itself being enough motivation, Fidelity and other own similar stakes to me. Why don’t they show up for work?” he added.
