SAN FRANCISCO — Tesla shareholders re-approved Elon Musk’s controversial 2018 pay package by a wide margin, Musk posted on X Wednesday night, appearing to resolve an uncertainty that has loomed over his future with the company.

A Delaware judge invalidated the package, worth as much as $56 billion earlier this year, arguing that the process that led to the deal had been unfair. As part of the deal, Musk was granted stock options as Tesla hit certain valuation milestones, accumulating massive amounts of shares that led to a record pay deal and played a hand in making Musk the richest person in the world.

Hmm, looks like we’re in the “lawsuits” stage of the game. I don’t expect that Elon can keep his pay package, so its going to go back to the Delaware Judge IIRC.

The interesting legal maneuver here is with regards to the Texas move. If Shareholders approve the move to Texas, it’d become a Texas vs Delaware issue. But… there’s legal precedent saying that such a move would require 66% of the vote instead of just 50%. I imagine that this alone (the threshold of “move”) will itself be subject to debate, and likely end up in Delaware court again before they’re allowed to move out. Or maybe not? Legal stuff can be quite sharp.

In any case, stay tuned for tonight as the official announcements come out. Things are going to be interesting!!

  • @AlternatePersonMan
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    176 months ago

    $56 billion is an unfathomably large amount of money. Tesla sold 1.8 million vehicles last year. Doing math (poorly), that’s $31,000 per vehicle! If statista is accurate, only 5 states take in more tax revenue than $56 billion.

    But sure. The world’s richest man deserves that money for- checks notes… tanking sales and the smashingly successful cyber truck.

    For so many reasons this payout is incredibly stupid.

    • @Everythingispenguins
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      6 months ago

      Wait so Tesla is losing money on every model 3 they sell then. The base model 3 is about 40k. Even assuming a 200% markup the cost to build one would be about $15,000. If Elon is taking $31,000 out of the net then each car is a loss of a few grand on every one.

      P.S. yes this is a logical extreme, but is an interesting one.

        • @Everythingispenguins
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          26 months ago

          Well all of that but a Dyson sphere. There isn’t enough matter in the solar system for one. Though maybe is will figure out how to defy the laws of thermodynamics. He is the world’s only super genius 🤷‍♂️