Connect with us

News

Musk responds to pay case lawyers requesting $6 billion in Tesla shares

Credit: Public domain (via Wikimedia Commons)

Published

on

Elon Musk has responded to lawyers in the recent Delaware case regarding his Tesla compensation package, after the attorneys this week requested legal awards of 29 million Tesla shares — worth almost $6 billion.

Musk’s pay package at Tesla was rejected in late January by Judge Kathaleen McCormick of the Delaware Court of Chancery, as part of a 2018 case brought forward by shareholder Richard Tornetta. Following the decision to void Musk’s $55.8 billion compensation package just over a month ago, Tornetta’s lawyers argued in a filing on Friday that they deserve over 29 million Tesla shares as their legal fees, worth around $5.95 billion at the company’s current valuation (via Bloomberg).

In the filing, the lawyers also explained why they requested the fee in Tesla stock instead of cash.

“We are prepared to ‘eat our cooking,’” Tornetta’s lawyers wrote. “This structure has the benefit of linking the award directly to the benefit created and avoids taking even one cent from the Tesla balance sheet to pay fees. It is also tax-deductible by Tesla.”

Tesla and Elon Musk to appeal $56B pay package decision

Advertisement

Tornetta’s case was brought to the court on behalf of shareholders, so roughly 267 million Tesla shares that would have been a part of Musk’s pay package are now expected to be returned to the company, according to the filing.

Tulane University Corporate Law Professor Ann Lipton says the legal team’s payout could be the largest attorney fee ever requested, at least that she’s familiar with.

“Now, to be fair, the case involved the largest compensation award ever to an executive,” Lipton added to Bloomberg.

“I assume the plaintiffs’ attorneys figured if they sought $6 billion in cash in fees it could cripple Tesla,” she says. “Since the case involved a stock award to Musk, they thought it would be appropriate to ask for the fee in shares so it wouldn’t be as rough for Tesla shareholders. That makes a lot of sense to me.”

Following the filing, multiple Tesla executives responded, including Musk himself.

Advertisement

In a flurry of posts on X on Saturday, Musk criticized the request, calling it “utterly disgraceful,” “ironic,” “criminal,” and saying that the the lawyers were “evil” in two separate replies. You can see just a couple of his posts below.

Rohan Patel, Tesla’s Vice President of Public Policy and Business Development, also responded to the reports, noting that he believed other employees at the company would be “equally disgusted” by the news.

After Judge McCormick’s decision to void Musk’s compensation package, made on January 30, the multi-company executive has motioned to move the incorporations of SpaceX, The Boring Company and Neuralink out of Delaware, and he’s expected to do the same with Tesla.

Advertisement

Musk has also been outspoken since the decision, noting that Tesla plans to appeal the decision and pointing to how much the lawyers representing Tornetta could profit from this trial. In response to an early February report, Musk said it was “so deeply and utterly wrong that a law firm that harmed Tesla could stand to gain billions.”

THIS TIME LAST YEAR:

Elon Musk’s lawyers to make closing arguments in CEO’s pay package case

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.

Advertisement

Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

Advertisement
Comments

News

Starship Flight 9 nears as SpaceX’s Starbase becomes a Texan City

SpaceX’s launch site is officially incorporated as Starbase, TX. Starship Flight 9 could launch on May 27, 2025. 

Published

on

spacex-starship-flight-9-starbase-city
(Credit: Jenny Hautmann/Wikimedia Commons)

SpaceX’s Starbase is officially incorporated as a city in Texas, aligning with preparations for Starship Flight 9. The newly formed city in Cameron County serves as the heart of SpaceX’s Starship program.

Starbase City spans 1.5 square miles, encompassing SpaceX’s launch facility and company-owned land. A near-unanimous vote by residents, who were mostly SpaceX employees, led to its incorporation. SpaceX’s Vice President of Test and Launch, Bobby Peden, was elected mayor of Starbase. The new Texas city also has two SpaceX employees as commissioners. All Starbase officials will serve two-year terms unless extended to four by voters.

As the new city takes shape, SpaceX is preparing for the Starship Flight 9 launch, which is tentatively scheduled for May 27, 2025, at 6:30 PM CDT from Starbase, Texas.

SpaceX secured Federal Aviation Administration (FAA) approval for up to 25 annual Starship and Super Heavy launches from the site. However, the FAA emphasized that “there are other licensing requirements still to be completed,” including policy, safety, and environmental reviews.

Advertisement

On May 15, the FAA noted SpaceX updated its launch license for Flight 9, but added: “SpaceX may not launch until the FAA either closes the Starship Flight 8 mishap investigation or makes a return to flight determination. The FAA is reviewing the mishap report SpaceX submitted on May 14.”

Proposed Texas legislation could empower Starbase officials to close local highways and restrict Boca Chica Beach access during launches. Cameron County Judge Eddie Trevino, Jr., opposes the Texas legislation, insisting beach access remain under county control. This tension highlights the balance between SpaceX’s ambitions and local interests.

Starbase’s incorporation strengthens SpaceX’s operational base as it gears up for Starship Flight 9, a critical step in its mission to revolutionize space travel. With growing infrastructure and regulatory hurdles in focus, Starbase is poised to become a cornerstone of SpaceX’s vision, blending community development with cutting-edge aerospace innovation.

Advertisement
Continue Reading

News

The Boring Company accelerates Vegas Loop expansion plans

The Boring Company clears fire safety delays, paving the way to accelerating its Vegas Loop expansion plans.

Published

on

Credit: The Boring Company/X

After overcoming fire safety hurdles, the Boring Company is accelerating its Vegas Loop expansion. The project’s progress signals a transformative boost for Sin City’s transportation and tourism.

Elon Musk’s tunneling company, along with The Las Vegas Convention and Visitors Authority (LVCVA) and Clark County, resolved fire safety concerns that delayed new stations.

“It’s new. It’s taken a little time to figure out what the standard should be,” said Steve Hill, LVCVA President and CEO, during last week’s board meeting. “We’ve gotten there. We’re excited about that. We’re ready to expand further, faster, than we have.”

Last month, the company submitted permits for tunnel extensions connecting Encore to a parcel of land owned by Wynn and Caesars Palace. The three tunnels are valued at $600,000 based on country records.

Plans for a Tropicana Loop are also advancing, linking UNLV to MGM Grand, T-Mobile Arena, Allegiant Stadium, Mandalay Bay, and the upcoming Athletics’ ballpark. Downtown extensions from the convention center to the Strat, Fremont Street Experience, and Circa’s Garage Mahal are also in the permitting process.

Advertisement

“Those are all in process,” Hill noted. “We’ve got machines that are available to be put in the ground. I think we’ve reached a framework for how these projects are going to work and how they’ll be permitted from a safety standpoint, as well as a building standpoint.”

The Boring Company has six boring machines, with three currently active in Las Vegas. Last week, TBC announced that it successfully mined continuously in a Zero-People-in-Tunnel (ZPIT) configuration, enabling it to build more tunnels faster, safer, and at a more affordable rate.

Tunneling under Paradise Road is underway as The Boring Company works on the University Center Loop. The University Center Loop is expected to connect to the Las Vegas Convention Center within two months, linking to the Westgate tunnel. The full Vegas Loop will span 104 stations and 68 miles. Even though The Boring Company’s tunnel network in Las Vegas isn’t nearly finished, it has already become a key attraction in the city.

“It’s such a great attraction for shows that are looking at this building (convention center) and we’re going to be connected to everybody in town,” Hill said. “It’s a real difference-maker.”

A few Vegas Loop stations are already operational, including those connected to Resorts World, Westgate, Encore, and all the Las Vegas Convention Center Loop stations. The Downtown Loop, which connects to the downtown area, and the Riviera Station, the hub that leads to Resorts World with Westgate destinations, are also operational.

Advertisement

As The Boring Company accelerates the Vegas Loop, its tunnels are poised to redefine mobility and tourism in Las Vegas, blending cutting-edge technology with practical urban solutions.

Continue Reading

News

Neuralink Blindsight human trials expected to start in the UAE

Neuralink aims to restore vision with its Blindsight BCI implant. First human implant for Blindsight may happen in UAE.

Published

on

Neuralink-clinical-trial-recruit-patient-prime-study
(Credit: Neuralink)

During Elon Musk’s interview at the Qatar Economic Forum, he announced that Neuralink aims to implant its Blindsight brain-to-computer interface (BCI) device in a human patient by late 2025 or early 2026.

Blindsight focuses on restoring vision. A few years ago, Musk mentioned that Neuralink’s BCI devices would restore vision for people, even those born blind.

“The first two applications we’re going to aim for in humans are restoring vision, and I think this is notable in that even if someone has never had vision ever, like they were born blind, we believe we can still restore vision. The visual part of the cortex is still there. Even if they’ve never seen before, we’re confident they could see,” Musk said during Neuralink’s Show & Tell in 2022. 

Musk said Blindsight could be implanted into a human patient in the United Arab Emirates (UAE). Neuralink plans to partner with the Cleveland Clinic Abu Dhabi to implant the first human patient with Blindsight.

Advertisement

Elon Musk’s neurotechnology company is partnering with the Cleveland Clinic Abu Dhabi to conduct the first clinical trial of the UAE-PRIME study. Like Neuralink’s PRIME study in the United States, UAE-PRIME will focus on human patients with motor and speech impairments.

Neuralink received Food and Drug Administration (FDA) approval to conduct the PRIME and CONVOY studies in the United States. PRIME tests the capabilities of the company’s Link implant to restore or enable motor and speech in participants. Meanwhile, the CONVOY study explores Link’s ability to control assistive robotic devices. Neuralink already has an assistive robotic arm called ARA that could expand patients’ autonomy beyond smart devices.

Blindsight would probably require a separate study from PRIME and CONVOY. As such, Neuralink might need FDA approval in the United States to start human trials for Blindsight. However, Blindsight already received a “breakthrough device” designation from the US FDA.

In April 2025, Neuralink opened its patient registry to participants worldwide. The neurotechnology company has already implanted its Link BCI device into five patients. Earlier this year, Neuralink welcomed one of its first PRIME study participants as the first patient in its CONVOY study.

Continue Reading

Trending