Tesla filed a motion on Friday urging a Delaware judge to acknowledge a shareholder vote in support of Elon Musk's $56 billion pay package and overturn a January order that voids it.
The EV firm also argued that Chancellor Kathaleen McCormick should not consider the attorneys who contested Musk's 2018 pay package's record $6 billion legal expense. Delaware's Court of Chancery received the filing, according to Reuters.
Tesla and Richard Tornetta, the shareholder who sued over the salary package, are considering how to settle and reward the CEO. Musk has said he may explore initiatives outside Tesla without greater investment, raising uncertainty as Tesla faces slowing sales and increased competition.
Tesla shareholders approved the $56 billion pay package on June 13. Tesla's worth has surged more than tenfold since the 2018 package, so many thought Musk deserved the compensation.
Tesla's petition asked the judge to evaluate the impact of shareholder vote by lowering legal expenses. Tesla wants to overturn the January judgment and believes it will prevail. The EV maker claims that having an independent board member examine and shareholders reapprove the compensation package addressed McCormick's concerns that Musk dominated talks. Shareholders lacked essential information before the 2018 vote.
Tornetta's lawyers argue that the shareholder vote on Elon Musk's compensation has no legal effect. Tesla acknowledged that voting to overrule a judicial ruling was "novel." The shareholder attorneys want their legal fees decided next.
Tesla recently announced Elon Musk's compensation package of $56 billion. Friday's share price of $182.19 values the deal at $48 billion.
Elon Musk Works on New Tesla Master Plan
According to Elon Musk, Tesla's fourth phase of the Master Plan is underway following last year's third Master Plan.
Early this week, Musk posted on X on Monday that he is working on Tesla Master Plan Part Four, extending Tesla's sustainable transportation and energy strategy.
The details of the fourth Tesla master plan remain unknown. According to Teslarati, the third section, issued in April 2023, focuses on end-use electrification and sustainable electricity generation and storage for a sustainable global energy economy.
Working on the Tesla Master Plan 4. It will be epic.
— Elon Musk (@elonmusk) June 17, 2024
The preceding Master Plans guided Tesla's development and innovation. In the 2006 Master Plan, the company's automotive business strategy was to build a sports car, use the earnings to make a cheap car, and then use those profits to create an even more affordable automobile while providing zero-emission electric power-generating choices.
Following Tesla's 2024 annual stockholders' meeting, Musk announced Master Plan Part Four, stating that the company was "starting a new book." Elon Musk stated in the Q1 2024 earnings call that recent layoffs and restructuring were important for the company's next growth phase.
Musk Tries to Win Back Advertisers
Separately, Elon Musk aims to win back X advertisers. He recently spoke at an event in Cannes to reassure advertisers and huge companies about social media's potential. He noted that his X social media platform reaches the world's most influential thinkers and leaders, as TechTimes previously reported.
Someone familiar with X's strategy said the company rebounded from controversies, including looser moderation guidelines, that scared away huge brands.
According to advertising experts, Elon Musk's unpredictable behavior and right-wing conspiracy theories on the site scared firms. An agency official said marketers "still have concerns" about Twitter, so the tech billionaire needs to show them "why they should return."
The insider stated that Elon Musk faces a tougher hurdle than other platforms since advertising on X appears to endorse the tech mogul, who is a controversial figure.
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