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Musk lawyers fight attempt to silence CEO in Tesla ‘funding secured’ tweet case

(Source: Tesla)

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Elon Musk’s lawyers are pushing back against a request from Tesla shareholders to silence the CEO from talking about a lawsuit dealing with the “funding secured” Tweet of 2018. Musk and his attorneys argued he should be able to freely talk about the fight against the Securities and Exchange Commission, but shareholders suing the Tesla CEO think otherwise.

Shareholders pushed U.S. District Judge Edward Chen to keep Musk from making any additional comments regarding his “interpretation and opinions” of the case, which has to do with his idea to take Tesla stock private in 2018, until it is finished. The shareholders suing Musk allege the CEO manipulated the stock price and defrauded them, a report from Bloomberg said.

Musk and his lawyers are pushing back against the request, arguing it is a breach of his first amendment rights.

The Tesla frontman’s attorneys said the group of investors suing him “ask this court to trample on Elon Musk’s First Amendment rights by barring him from publicly discussing this case or its underlying facts,” arguing the request to muzzle the CEO “cannot be reconciled with the Constitution’s guarantee of free speech and should be denied.”

Elon Musk waves to fans in attendance to his TED interview on April 14. (Credit: Gilberto Tadday/TED)

It is the most recent development in the case, which also received additional developments last week. On Friday, Judge Chen ruled Musk’s claim that he was really considering taking Tesla private was false. Chen had pondered the legitimacy of Musk’s claims for some time before ultimately ruling Musk’s Tweet was not truthful. It was a major win for the shareholders.

The case will ultimately head to trial in San Francisco in January.

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Filings from the suit state that Musk argued the investor group’s attorneys did not make any effort to show how comments made at the TED interview he participated in last week would make it to potential jurors in the case. During the interview last Thursday, Musk made several claims about the case, including he only accepted the terms of a consent decree with the SEC to save Tesla.

“Funding was indeed secured,” Musk said. “I should say, ‘Why do I not have respect for the SEC’ in that situation. I don’t mean to blame everyone at the SEC, but certainly the San Francisco office. The SEC knew that funding was secured,” Musk added. “They pursued an active public investigation, nonetheless.”

“I was told by the banks that if I chose not to settle with the SEC, the banks would cease providing working capital, and Tesla would go bankrupt immediately. That’s like having a gun to your child’s head.”

Elon Musk blasts the SEC for 2018 decree: ‘That’s like having a gun to your child’s head’

Musk was upset with the perception that agreeing to the decree was an admittance of guilt.

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“It makes it look like I lied, when I did not, in fact, lie. I was forced to admit I lied to save Tesla’s life.”

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla aims to combat common Full Self-Driving problem with new patent

Tesla writes in the patent that its autonomous and semi-autonomous vehicles are heavily reliant on camera systems to navigate and interact with their environment.

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Credit: @samsheffer | x

Tesla is aiming to combat a common Full Self-Driving problem with a new patent.

One issue with Tesla’s vision-based approach is that sunlight glare can become a troublesome element of everyday travel. Full Self-Driving is certainly an amazing technology, but there are still things Tesla is aiming to figure out with its development.

Unfortunately, it is extremely difficult to get around this issue, and even humans need ways to combat it when they’re driving, as we commonly use sunglasses or sun visors to give us better visibility.

Cameras obviously do not have these ways to fight sunglare, but a new patent Tesla recently had published aims to fight this through a “glare shield.”

Tesla writes in the patent that its autonomous and semi-autonomous vehicles are heavily reliant on camera systems to navigate and interact with their environment.

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The ability to see surroundings is crucial for accurate performance, and glare is one element of interference that has yet to be confronted.

Tesla described the patent, which will utilize “a textured surface composed of an array of micro-cones, or cone-shaped formations, which serve to scatter incident light in various directions, thereby reducing glare and improving camera vision.”

The patent was first spotted by Not a Tesla App.

The design of the micro-cones is the first element of the puzzle to fight the excess glare. The patent says they are “optimized in size, angle, and orientation to minimize Total Hemispherical Reflectance (THR) and reflection penalty, enhancing the camera’s ability to accurately interpret visual data.”

Additionally, there is an electromechanical system for dynamic orientation adjustment, which will allow the micro-cones to move based on the angle of external light sources.

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This is not the only thing Tesla is mulling to resolve issues with sunlight glare, as it has also worked on two other ways to combat the problem. One thing the company has discussed is a direct photon count.

CEO Elon Musk said during the Q2 Earnings Call:

“We use an approach which is direct photon count. When you see a processed image, so the image that goes from the sort of photon counter — the silicon photon counter — that then goes through a digital signal processor or image signal processor, that’s normally what happens. And then the image that you see looks all washed out, because if you point the camera at the sun, the post-processing of the photon counting washes things out.”

Future Hardware iterations, like Hardware 5 and Hardware 6, could also integrate better solutions for the sunglare issue, such as neutral density filters or heated lenses, aiming to solve glare more effectively.

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Delaware Supreme Court reinstates Elon Musk’s 2018 Tesla CEO pay package

The unanimous decision criticized the prior total rescission as “improper and inequitable,” arguing that it left Musk uncompensated for six years of transformative leadership at Tesla.

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Gage Skidmore, CC BY-SA 4.0 , via Wikimedia Commons

The Delaware Supreme Court has overturned a lower court ruling, reinstating Elon Musk’s 2018 compensation package originally valued at $56 billion but now worth approximately $139 billion due to Tesla’s soaring stock price. 

The unanimous decision criticized the prior total rescission as “improper and inequitable,” arguing that it left Musk uncompensated for six years of transformative leadership at Tesla. Musk quickly celebrated the outcome on X, stating that he felt “vindicated.” He also shared his gratitude to TSLA shareholders.

Delaware Supreme Court makes a decision

In a 49-page ruling Friday, the Delaware Supreme Court reversed Chancellor Kathaleen McCormick’s 2024 decision that voided the 2018 package over alleged board conflicts and inadequate shareholder disclosures. The high court acknowledged varying views on liability but agreed rescission was excessive, stating it “leaves Musk uncompensated for his time and efforts over a period of six years.”

The 2018 plan granted Musk options on about 304 million shares upon hitting aggressive milestones, all of which were achieved ahead of time. Shareholders overwhelmingly approved it initially in 2018 and ratified it once again in 2024 after the Delaware lower court struck it down. The case against Musk’s 2018 pay package was filed by plaintiff Richard Tornetta, who held just nine shares when the compensation plan was approved.

A hard-fought victory

As noted in a Reuters report, Tesla’s win avoids a potential $26 billion earnings hit from replacing the award at current prices. Tesla, now Texas-incorporated, had hedged with interim plans, including a November 2025 shareholder-approved package potentially worth $878 billion tied to Robotaxi and Optimus goals and other extremely aggressive operational milestones.

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The saga surrounding Elon Musk’s 2018 pay package ultimately damaged Delaware’s corporate appeal, prompting a number of high-profile firms, such as Dropbox, Roblox, Trade Desk, and Coinbase, to follow Tesla’s exodus out of the state. What added more fuel to the issue was the fact that Tornetta’s legal team, following the lower court’s 2024 decision, demanded a fee request of more than $5.1 billion worth of TSLA stock, which was equal to an hourly rate of over $200,000.

Delaware Supreme Court Elon Musk 2018 Pay Package by Simon Alvarez

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Tesla Cybercab tests are going on overdrive with production-ready units

Tesla is ramping its real-world tests of the Cybercab, with multiple sightings of the vehicle being reported across social media this week.

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Credit: @JT59052914/X

Tesla is ramping its real-world tests of the Cybercab, with multiple sightings of the autonomous two-seater being reported across social media this week. Based on videos of the vehicle that have been shared online, it appears that Cybercab tests are underway across multiple states.

Recent Cybercab sightings

Reports of Cybercab tests have ramped this week, with a vehicle that looked like a production-ready prototype being spotted at Apple’s Visitor Center in California. The vehicle in this sighting was interesting as it was equipped with a steering wheel. The vehicle also featured some changes to the design of its brake lights.

The Cybercab was also filmed testing at the Fremont factory’s test track, which also seemed to involve a vehicle that looked production-ready. This also seemed to be the case for a Cybercab that was spotted in Austin, Texas, which happened to be undergoing real-world tests. Overall, these sightings suggest that Cybercab testing is fully underway, and the vehicle is really moving towards production.

Production design all but finalized?

Recently, a near-production-ready Cybercab was showcased at Tesla’s Santana Row showroom in San Jose. The vehicle was equipped with frameless windows, dual windshield wipers, powered butterfly door struts, an extended front splitter, an updated lightbar, new wheel covers, and a license plate bracket. Interior updates include redesigned dash/door panels, refined seats with center cupholders, updated carpet, and what appeared to be improved legroom.

There seems to be a pretty good chance that the Cybercab’s design has been all but finalized, at least considering Elon Musk’s comments at the 2025 Annual Shareholder Meeting. During the event, Musk confirmed that the vehicle will enter production around April 2026, and its production targets will be quite ambitious. 

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