Tesla Stock

[SC Maintenance]

No one in their right mind will incorporate in Delaware if this stands, and many companies will move. If shareholders don't get to decide how their money gets spent then its no longer the free market.

I may actually want to buy some Tesla stock now?

 

[alarmguy]

No one in their right mind will incorporate in Delaware if this stands, and many companies will move. If shareholders don't get to decide how their money gets spent then its no longer the free market.

I may actually want to buy some Tesla stock now?

I suspect with the second vote and full disclosure this time around the ruling will go in favor of Musk.
IF I am correct much of the reason the pay package was struck down was because in the “shady” way it was presented to the shareholders in 2018
Meaning the judge felt the board, many friends with musk was not upfront regarding the package in 2018

I suspect Tesla knew that and why the new vote … or why would they bother ?

We have to remember the press only reports a fraction of full court cases

 

[SC Maintenance]

I suspect with the second vote and full disclosure this time around the ruling will go in favor of Musk.
IF I am correct much of the reason the pay package was struck down was because in the “shady” way it was presented to the shareholders in 2018
Meaning the judge felt the board, many friends with musk was not upfront regarding the package in 2018

I suspect Tesla knew that and why the new vote … or why would they bother ?

We have to remember the press only reports a fraction of full court cases

My understanding was the judge ruled that Elon was too "chummy" with the board members that negotiated the package in the first place, and the board didn't accurately present the package to the voters back in 2018.

The headlines I hear this AM is they must now convince said judge that Elon and the board didn't do the same this time, and they make lame excuses how they used the media to do so again. This argument is foolish. Given the package was already ruled against by a judge, and the entire thing was litigated a second time in media and on public forums, trying to say proxy voters were manipulated again would be foolish.

IMHO.

 

[GON]

I just found this update.
It’s tied up with the Delaware courts even though voters gave go ahead to move to Texas.
Obviously a fluid situation but the ruling still stands until … well next move is still up to Tesla as they say they will try to overturn in Delaware courts.
Good read below,

Musk wins back $44.9B Tesla pay package in shareholder vote | Jefferson City News-Tribune

DETROIT (AP) -- Tesla shareholders have voted to restore CEO Elon Musk's record $44.9 billion pay package that was thrown out by a Delaware judge earlier this year.

www.newstribune.com

What I found intriguing about the lawsuit it was filed on behalf of a California resident who owned eight shares of TSLA, yes just eight shares. The California based law firm went on a "search for a victim". Lots of frivolous or near frivolous lawsuits filed every day, many end up paying the lawyers very well. I sense TSLA shareholders were overwhelming happy with the performance TSLA stock during the period Musk was issued the stock options and the time of the filing of the lawsuit.

A side issue is the state of Delaware. A state with no state sales tax and generates significant revenue to the state from having corporations from around the U.S use Delaware as their "home". The article stated this lawsuit might result in Corporations taking a second look at registering their corporation as a "Delaware. Corporation".

 

[alarmguy]

My understanding was the judge ruled that Elon was too "chummy" with the board members that negotiated the package in the first place, and the board didn't accurately present the package to the voters back in 2018.

The headlines I hear this AM is they must now convince said judge that Elon and the board didn't do the same this time, and they make lame excuses how they used the media to do so again. This argument is foolish. Given the package was already ruled against by a judge, and the entire thing was litigated a second time in media and on public forums, trying to say proxy voters were manipulated again would be foolish.

IMHO.

Hmmm ...
I think we agree but not sure *LOL* I thought I typed much the same thing, but who knows?

Agree, re-vote was to prove to the judge that the shareholders want the pay package to go through> Judge previously rules for plaintiffs on the basis (one of a few of them) that the package last time wasnt presented properly. It is interesting and out of anyone in the entire country of course involves Elon ...

 

[alarmguy]

What I found intriguing about the lawsuit it was filed on behalf of a California resident who owned eight shares of TSLA, yes just eight shares. The California based law firm went on a "search for a victim". Lots of frivolous or near frivolous lawsuits filed every day, many end up paying the lawyers very well. I sense TSLA shareholders were overwhelming happy with the performance TSLA stock during the period Musk was issued the stock options and the time of the filing of the lawsuit.

A side issue is the state of Delaware. A state with no state sales tax and generates significant revenue to the state from having corporations from around the U.S use Delaware as their "home". The article stated this lawsuit might result in Corporations taking a second look at registering their corporation as a "Delaware. Corporation".

I dont really have a problem with our court system, most anything we read in the media is void of the information involving days or weeks or testimony in court cases.

I have no problem with Delaware, it's a free country, there is a reason why the overwhelming amount of corporations register there. True they can go elsewhere but if you really think about it. I am not so sure they will do so because of Elon Musk and his games. Actually I am sure they will not.

 

[Nessism1]

The Delaware court involved in this only presides over matters related to corporations registered in Delaware. It's not a federal court, where the rulings apply throughout the country. That's why Musk is considering moving Tesla to Texas. It does seem that resolving this matter in Delaware is the preferred method, or at least, the first tact. Moving may be last option.

 

[alarmguy]

The Delaware court involved in this only presides over matters related to corporations registered in Delaware. It's not a federal court, where the rulings apply throughout the country. That's why Musk is considering moving Tesla to Texas. It does seem that resolving this matter in Delaware is the preferred method, or at least, the first tact. Moving may be last option.

Correct but it does not mean a court in Texas will disagree with the court in Delaware.
Also one other mis-conception. Elon Musk does not have the power as CEO to move from Delaware to Texas. Only Tesla's Board of Directors can make that move. With that said, shareholders have voted a move is ok with them.

For others, Im not so sure many people understand the complexities of doing this. They just can not pack up and leave Delaware and go to Texas. Texas courts are not even set up for such a thing. ... and just because one man Elon feels upset with them dont believe the other businesses agree with him. DO you really think the other powerhouse corporations are going to pack up and leave all the benefits of Delaware behind because they rules against a situation where they felt a 2018 vote to give a man 42 BILLION dollars was stuck down? *LOL* BTW- this would take Tesla years to do and I suspect Musk wont even be there. The link below explains it.

https://www.axios.com/2024/01/31/elon-musk-tesla-delaware-court-texas-law