Trial opens over billionaire Tesla payment to Elon Musk | DW | 14.11.2022

At the start of the trial, the lawyer for Richard Tornetta, the Tesla shareholder who sued Musk, said that Elon Musk himself will testify on Wednesday. Tornetta filed the lawsuit considering that the remuneration, the highest in history for an executive, is excessive and that Musk got it thanks to the power he has over the company and the board of directors, since he is one of its main shareholders.

Tornetta asked the Delaware court, which is the same one that for months dealt with the lawsuit filed against Musk by Twitter, after he initially broke the agreement to take over the social network, to annul the payment of compensation. Both Musk and Tesla have denied Tornetta’s accusations and have justified compensation for the results achieved by the automaker.

The payment was tied to Tesla’s meeting 12 goals and would be made in company shares. Under the agreement reached by Musk and Tesla, the businessman could buy 1% of the manufacturer’s shares at a bargain price each time the company achieved one of the established objectives.

Tesla stock price plummeting since Musk took over Twitter

The start of the trial comes at a time when Tesla shares have fallen sharply since Musk took control of Twitter, drawing criticism from many investors in the automaker.

This Monday, Musk tried to reassure Tesla shareholders with a message on Twitter after revealing that he is devoting much of his time to managing the social network. “I’ve been at the Twitter headquarters in San Francisco all night. I’ll be working and sleeping here until the organization is fixed,” the businessman initially revealed.

But when a Twitter user rebuked him that Tesla shareholders have lost money so Musk could fund Twitter, the businessman replied: “I’ve got Tesla covered too. I’ll be there part of the week.”

young (efe, wsj)

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Trial opens over billionaire Tesla payment to Elon Musk | DW | 14.11.2022