In a surprising turn of events, Tesla CEO Elon Musk's request for increased control over the automaker has caused concern among shareholders, resulting in a significant drop in Tesla's stock value. Musk's unusual appeal came during the company's recent earnings conference call, where he expressed his fear of losing influence over Tesla's AI projects to external forces.

Musk's proposition for a 25% voting control over Tesla, along with his mention of potentially diverting AI products to his own startup, xAI, has raised eyebrows among investors. Musk's conflicting interests between Tesla and xAI have led some to question whether he is breaching his fiduciary duty to Tesla shareholders.

The issue was raised by over 4,000 Tesla retail investors, who sought clarity on Musk's intentions during the company's recent earnings call. Musk attempted to explain his position, highlighting his vision of building a formidable artificial intelligence and robotics venture. He expressed concerns about his potential removal from the company by shareholder advisory firms, referring to previous challenges with Institutional Shareholder Services (ISS) and Glass Lewis, which he controversially nicknamed ISIS.

Musk clarified that he does not seek additional financial gain but rather desires to be an effective steward of powerful technology. To achieve this, he proposed a dual-class stock structure, but such a setup is not feasible after an initial public offering (IPO). In order to gain the desired voting control, Musk would likely need to receive a stock package worth approximately $60 billion, as he sold a significant amount of Tesla shares to acquire Twitter.

The aftermath of the earnings conference call was an abrupt drop in Tesla's stock price, plunging as much as 10% this morning. However, it is important to note that Musk already wields significant control over the company as its CEO and largest shareholder. Shareholder activism from ISS and other entities has proven largely ineffective in influencing Tesla's operations.

Nonetheless, concerns remain regarding Musk's potential conflict of interest between Tesla and xAI. Despite shareholders' inquiries, Musk did not address this specific issue during the conference call. Shareholders argue that the lack of response from the Tesla board further exemplifies Musk's current control over the company.

The situation has underscored the delicate balance between Musk's ambitions and the fiduciary duty he owes to Tesla shareholders. It has sparked debate about the future direction of both Tesla and xAI. The uncertainty surrounding these developments has left investors anxious and highlights the unique challenges faced by Tesla as it continues to push boundaries in the electric vehicle and green energy sectors.

Tesla shareholders will closely monitor any further developments and decisions regarding Musk's request for increased control. The implications of this battle between individual influence and shareholder authority could have far-reaching consequences for the future of Tesla and its position within the AI and robotics industries.

Note: This article is generated based on the information provided and does not include any additional elements beyond what was mentioned.