Tesla/Musk We Expect Will Win This Case At The Supreme Court

This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.

In light of the Delaware Court of Chancery’s unusual step to override Tesla’s shareholder-approved compensation plan for Elon Musk twice in a row, Wall Street analysts are now weighing in on the way ahead, with Wedbush’s flamboyant analyst, Dan Ives, using predictably colorful phrases to delineate his thoughts on the topic.

To wit, Dan Ives has termed the decision of the Delaware Chancery Court Chief Judge, Kathaleen St. J. McCormick, to again terminate Elon Musk’s shareholder-approved compensation plan as “another Twilight Zone legal move.”

As such, Ives now believes that this issue will be ultimately resolved only in the US Supreme Court:

“Tesla/Musk we expect will win this case at the Supreme Court as battle rolls on.”

For the benefit of those who might not be aware, Tesla faced a trial in the Delaware Court of Chancery in 2022, where one of its shareholders, Richard Tornetta, alleged that Elon Musk’s 2018 compensation plan should be voided by the court as it was a result of sham negotiations between a beholden board and an all-powerful CEO.

At the conclusion of that trial in early 2024, the Delaware Chancery Court Chief Judge McCormick voided Elon Musk’s compensation plan, prompting Musk to declare that Tesla would abandon Delaware and reincorporate in Texas. However, Elon Musk’s lawyers assured the Delaware Chancery Court that it would continue to retain jurisdiction over the matter of the Tesla CEO’s compensation.

To counteract the court’s negative ruling, Tesla and Elon Musk opted for a shareholder-led re-ratification of the compensation plan under section 204 of the Delaware General Corporation Law, which provides for rectifying corporate acts that are defective due to a “failure of authorization” but not breaches of fiduciary duty, as alleged in this case.

As we noted yesterday, Judge McCormick has now refused to accept the re-ratified pay package, going so far as to note:

“Even if a stockholder vote could have a ratifying effect, it could not do so here.”

Tesla shares are down 1 percent at the time of writing, highlighting the investor conviction that this issue will ultimately resolve in Elon Musk’s favor. Bear in mind that Musk has previously hinted at quitting Tesla should he fail to win an appropriate pay package.

Meanwhile, Jim Cramer is also out today with his signature hyperbole.

In other news, Tesla has now recorded its second-best sales week in China, courtesy of a veritable host of incentives. This comes as the EV giant continues to contend with brand image challenges in the EU and the US.

Also, Tesla is now rolling out the 13th version of its FSD, which is expected to unlock significantly more miles driven without any manual intervention and pave the way for autonomous parking in a garage.

Share this story

Facebook

Twitter

Visited 1 times, 1 visit(s) today

Related Article

The lawyers who took on Tesla and Elon Musk wanted $5.6 billion for winning the case. In a lawsuit about excessive pay, ‘That was a bold ask,’ said the judge. 

A Delaware court judge this week denied Tesla CEO Elon Musk’s bid to reinstate his pay package, now valued at $100 billion.  But there was another denial issued: The lawyers who successfully argued that Musk’s pay was illegal and should be rescinded wanted $5.6 billion for their efforts. The judge didn’t quite bite.   However, they

10 Celebrities That Should Be on ‘House of Villains’

Now two seasons in, House of Villains has been the guilty pleasure smash hit reality fans have been waiting for. The series watches as some of the greatest villains in the genre compete to earn the moniker of America’s Greatest Supervillain and $200,000. Competing for power, safety, and the ability to nominate their rivals for

Bill Maher Might Quit ‘Real Time’ Because Donald Trump Jokes

New rule: if Donald Trump is getting back his old job, then it might not be worth staying at your current job. That’s the premise that Bill Maher floated on his “Club Random” podcast speaking with Jane Fonda in an episode released Sunday. While interviewing the actor and activist, Maher expressed exhaustion at the prospect

Half of US Adults Disapprove of Joe Biden Pardoning Hunter: Poll

Fifty percent of U.S. adults do not approve of President Joe Biden pardoning his son Hunter, according to a new YouGov poll. On Sunday, President Biden announced the pardon saying in part, “Today, I signed a pardon for my son Hunter. From the day I took office, I said I would not interfere with the

Jeff Bezos donates to Coalition for the Homeless in Central Florida

The work to help people experiencing homelessness is complicated and costly – which is why the Coalition for the Homeless was pleased to receive a $5 million grant from a foundation led by Jeff Bezos. “Through this grant which we are honored and thrilled to have received, we’re going to be able to help even

This Is Where Democrats Can Work With Elon Musk’s DOGE To Cut Spending

On “Forbes Newsroom,” Congressman Ro Khanna (D-Calif.) discussed possible areas of agreement for government reform between Democrats and the Department of Government Efficiency (DOGE), spearheaded by Elon Musk and Vivek Ramaswamy. Khanna pointed to the Department of Defense as a place to cut spending and save taxpayer money, an idea supported by Musk and Senator

Celebrities at the 2024 Gotham Awards

Here’s a breakdown of the rest of the notable looks from Monday night’s 2024 Gotham Awards in New York City. Throwing in the towel on expectation Angelina Jolie in a black scarf-like dress has officially lowered my hopes for awards season. It lacked any interest you’d expect from such an iconic star. The design felt

What Happens Next in Elon Musk’s Tesla Pay Battle

A Delaware judge again struck down Elon Musk’s $55 billion pay package. Legal experts walked BI through what the appeal process could look like for Tesla. Tesla may also reintroduce the package in Texas, a strategy that could end up costing shareholders more. Elon Musk’s battle over his Tesla pay is entering a new phase. A

How Rixo’s Vintage-Inspired Dresses Became a Celebrity Style Phenomenon

They say fame changes people. What about dressing famous people? From the outside, it seems Orlagh McCloskey and Henrietta Rix, co-founders of the celebrity-adored, dress-forward label Rixo, aren’t all that different from when they got started in 2015. Sure, they no longer live in the shared apartment where they sketched their first easygoing dresses, inspired

Hallow Teams Up With Celebrities for 2024 Advent Challenge

Published: December 3, 2024 Photo from Jonathan Roumie’s Instagram These Celebrities Want You to Draw Closer to God This Advent By Movieguide® Contributor What do Bear Grylls, Gwen Stefani, Kevin James, Lauren Daigle, Jonathan Roumie and Francis Chan all have in common? You can join them this Advent season on the Hallow prayer app. This year,

Elon Musk and Vivek Ramaswamy agree on ‘need to scrutinize’ US funding for NGOs

Elon Musk and Vivek Ramaswamy — the duo President-elect Donald Trump tapped for the effort known as the Department of Government Efficiency (DOGE) — have indicated that they plan to examine funding for non-governmental organizations (NGOs). “We need to scrutinize U.S. government funding of ‘non-government organizations,’” Ramaswamy noted in a post on X. “It’s an

2024 Election Highlights the Lack of Influence Hollywood Celebrities Have in America

1 Celebrities once leveraged their platforms to shape political opinions and sway elections, but their influence appears to be diminishing as the public grows weary of perceived elitism and performative gestures. High-profile figures such as Oprah Winfrey and Robert De Niro have faced criticism for actions and statements seen as hypocritical or out of touch,

Bezos backs RISC-V chipmaker Tenstorrent at $2.6b valuation

Amazon’s founder Jeff Bezos has invested in a chipmaker Tenstorrent – joining Samsung and AFW Partners among others in a monster $693 million Series D round as the company looks to ramp up its RISC-V architecture proposition for AI, in what is a major, arguably contrarian bet. RISC-V is an open standard, allowing anyone to

These celebrities played Mother Ginger in Ballet Austin’s ‘Nutcracker’

To the onstage participants in the scene, it’s the most exciting 60 seconds in “The Nutcracker.” Deep into the second act, out rolls Mother Ginger, a giant matron dressed in red and white. From underneath her voluminous skirts emerge a dozen or so children in candy-colored costumes, who prance expertly around the stage for about

Elon Musk Says Latest Rejection of Tesla Payday Is ‘Totally Crazy’

Elon Musk hit out at a Delaware judge’s latest rejection of his mega pay package. The Tesla CEO said the ruling was “totally crazy” and “absolute corruption.” Musk and Tesla supporters have criticized the ruling in posts on social media. Elon Musk hit out at a Delaware judge’s latest rejection of his mega pay package.

Wall Street isn’t buying Trump’s deportation threats or Elon Musk’s spending cut claims

New York CNN  —  President-elect Donald Trump has promised to expel millions of undocumented people as part of the biggest deportation program in American history. But Wall Street doesn’t believe the looming immigration crackdown will live up to Trump’s campaign trail hype. Although investors expect immigration will slow significantly during Trump’s second administration, just 6%

0
Would love your thoughts, please comment.x
()
x