Elon Musk testified that he did not talk with Tesla board members about his $2.6 billion stock reward package. This suggests that the electric car mogul’s net worth is much lower than was thought.
Elon Musk spoke in court against allegations that Tesla’s board members have been his cronies.
They did not have a clear vision as to where they wanted to be, and they did not have clear targets, according to the board director.
Just this week, Elon Musk is set to testify that his years-long stock deal may have been illegal. The case centers on the “cheat sheets,” which included a code indicating how much Tesla was worth and how much he would earn if the company met certain revenue, profit, and growth targets.
Richard Tornetta, a shareholder who filed suit against Elon Musk, claimed in court documents that board members negotiated a salary agreement with the company’s director in April 2017. Tornetta’s lawyers say Tesla executives didn’t expect Musk to leave the company and hadn’t begun to identify possible successors for him.
On the stand, Elon Musk refuted a claim in the lawsuit that his shares were an incentive for Tesla. Despite the company’s current existential struggle to speed up the production of its first mass-market car, the Model 3, he said he was considering leaving Tesla.
In 2019, a Delaware judge allowed most of the lawsuit filed against Tesla and Musk to proceed.
After being sued by Musk, Twitter was granted a preliminary injunction by Chancellor Kathaleen McCormick of the Delaware Court of Chancery last month. The social media company also filed a lawsuit against him for attempting to back out of the deal. As soon as Musk completed the transaction and removed himself from the list of defendants, he was granted a permanent injunction.
In 2018, Tesla’s shares began to rise sharply, going from about $21 to a high of $410 later in the year. From then until now, they have dropped by over 50% and are on the verge of trading at around $190.
Tesla founder Elon Musk used his time on the witness stand to bring up some of his favorite talking points, including how electric cars are a proven less-polluting form of transportation and why he despises the Securities and Exchange Commission and investors.
Elon Musk’s response to the question about Tesla leaving Autopilot during a fatal crash shows that he truly has earned his money.
Musk was suddenly confronted with questions from the SEC attorney, Gregory Varallo. The attorney claimed that Musk seemed like he couldn’t or wouldn’t listen to authority. This is unfair and takes a lot of time, especially for Tesla’s investors, who are a real threat to the people who work at the company. In response to this series of events, Musk lashed out at the SEC and even said he had already secured funding for Tesla to go private if need be. To resolve Pravin Gordhan Patil’s lawsuit against Musk, as well as settle his own lawsuit, Musk agreed to resign from his role as chairman of Tesla and pay a $20 million fine. That settlement is now void as U.S District Court Judge Alison Nathan turned down Musk on April 17th to end his agreement with the SEC.
Greg still talks about it, but the SEC is still after me.
Musk kept his answers short and didn’t offer many insights to reporters. When he did, he did so in a manner that wasn’t particularly helpful.
Mr. Musk’s digressions dominated the start of his testimony, leading Chancellor McCormick to ask when it would be over. Mr. Musk responded by saying he couldn’t end the debate, which led to more digging sessions.