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Tesla boss Elon Musk: "We were in a pretty tough situation back then, we lost a lot of money."
Photo: Sergei Gapon / AFP
Elon Musk's prospects of receiving agreed compensation worth up to $56 billion from Tesla have fallen significantly. A judge in the US state of Delaware found that company boss Musk had too much influence in the background when agreeing on the stock allocation plan in 2018 for one to speak of a fair process. In the process, she supported the plaintiff who wants to annul the agreement with Musk.
The judge left it open on Tuesday as to what would happen next. She instructed the plaintiff and Tesla to work out a solution. At the same time, she emphasized that annulment of the mega-deal does not automatically follow from the judgment - but the plaintiff has a right to it. The electric car manufacturer and Musk can still appeal.
Plaintiff Richard Tornetta, a Tesla shareholder, argued in court that Musk's goals were easy to achieve. Musk was not even required to dedicate his full time to the car manufacturer. Even back then, he was only a part-time boss, as he also ran the space rocket company SpaceX. Musk later also bought the online platform Twitter, which he then renamed X.
“You thought electric vehicles were a joke”
The multi-billionaire defended his Tesla salary package during a questioning in court in 2022. When the share package was approved in 2018, investors thought "that we would fail and go bankrupt," said Musk. »We were in a pretty tough situation back then, we lost a lot of money. The probability of survival was extremely low. The automotive industry had made fun of Tesla for a long time, Musk said. “They thought electric vehicles were a joke.” Tesla only achieved its breakthrough with the enormous success of its Model 3.
According to the 2018 plan, Musk could get stock options in twelve steps with a maximum value of up to $55.8 billion (51.46 billion euros) if Tesla's stock market value and business figures grew with certain minimum values. The judge ruled that Tesla's shareholders had not been properly informed about the process in which the huge package was negotiated. Musk had close connections with some people who were involved in the negotiations on Tesla's side.
Musk initially did not say whether he planned to appeal. On his online platform
After the verdict, the plaintiff's lawyer spoke of a "good day for the good guys."
hen/dpa/AFP/Reuters