Connect with us
Conectividade_e_Proteção_da_Amazônia_com_Elon_Musk_-_52089896343 Conectividade_e_Proteção_da_Amazônia_com_Elon_Musk_-_52089896343

News

Elon Musk heads to trial for $56bn Tesla pay package

Ministério Das Comunicações, CC BY 2.0 , via Wikimedia Commons

Published

on

Elon Musk will head to trial this week in Wilmington, Delaware, to take the stand in a case regarding his $56 billion Tesla pay package. A Tesla shareholder claims the the pay package was set up with easy performance targets that Musk could easily accomplish, and shareholders were misled into approving it.

Tesla shareholder Richard Tornetta is hoping the five-day trial in Wilmington will result in the court rescinding the pay package. Tornetta wants to prove that Musk used his dominance over Tesla’s board to dictate the terms of his bonus package.

The lawsuit argues that the terms of the pay package should have required the CEO to work at Tesla full-time, which was not a requirement. However, 2018 coverage of Tesla’s struggles to ramp up production of the Model 3 and stay afloat financially uncovered that the CEO was sleeping in the company’s Fremont Factory.

“The reason I slept on the floor was not because I couldn’t go across the road and be at a hotel. It was because I wanted my circumstances to be worse than anyone else at the company. Whenever they felt pain, I wanted mine to be worse,” he said in an interview with Bloomberg that year.

Musk and several Tesla directors, including Ira Ehrenpreis, a director since 2007, are also defendants in the case and argue the pay package was designed for the CEO to guide the automaker through persistent growth through sizeable monetary pay bonuses. The 2018 pay package catalyzed a ten-fold growth in Tesla’s valuation, making it a trillion-dollar company at one point.

Advertisement

Tesla experienced growth fiscally and through manufacturing, as its annual production capacity has multiplied by nearly eight times since then. Tesla delivered 245,240 vehicles in 2018, while its current production capacity sits at 1.9 million vehicles every year. According to analysts, Tesla is projected to deliver between 1.3 million and 1.7 million vehicles this year.

Musk is expected to be in court as soon as Tuesday, Reuters reported. Interestingly, the Tesla CEO will sit in front of Chancellor Kathaleen McCormick of the Delaware Court of Chancery, who also oversaw Musk’s $44 billion Twitter acquisition case last month.

Legal experts believe Musk is in a better position in this case than the Twitter acquisition lawsuit. Company boards have relatively no restrictions on what they can do to set executive compensation. However, pay packages must meet tougher legal terms when they involve a controlling shareholder. Musk owned 21.9 percent of Tesla at the time the pay package was approved.

The package allows Musk to buy 1 percent of Tesla’s stock at a discount each time performance and financial targets are met. Tesla hit 11 of the 12 targets, increasing in value monumentally from $50 billion to $1 trillion.

We’d love to hear from you! Please send us tips, comments, or suggestions at tips@teslarati.com, or you can reach me directly at joey@teslarati.com.

Advertisement

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

Advertisement
Comments

News

SpaceX Starship Flight 13 faces wrath of the Texas skies

SpaceX pushed Starship Flight 13 to Friday, blaming weather instead of the previous engine issues.

Published

on

By

SpaceX called off Thursday’s launch attempt of Starship Flight 13, pushing the mission to Friday because of weather tied to Tropical Storm Bertha. The company confirmed the delay on X, noting “Now targeting Friday, July 24 for Starship’s thirteenth flight test, due to weather. A key objective for the flight test is to get clear imagery from the ground of Starship’s heatshield as it flies at a higher dynamic pressure during ascent, which won’t be possible with today’s weather conditions.”

This is the second delay for Flight 13 in two weeks. SpaceX first tried to launch the mission on July 16, but the countdown ended in an automated abort at T-0 when four of Super Heavy Booster 20’s 33 Raptor engines failed to ignite. Musk said at the time that two Raptors would need to be removed and replaced, as Teslarati reported. The company spent the following week destacking Ship 40 and Booster 20, swapping engines, and running leak checks before restacking the vehicle on Pad 2 Wednesday night, according to Spaceflight Now’s live coverage.

Elon Musk debunks $52 billion SpaceX-NVIDIA GPU deal

 

Unlike the engine problem, Thursday’s delay has nothing to do with the hardware. SpaceX wants clean footage of Starship’s heat shield captured from the ground as the vehicle flies through max dynamic pressure, something the storm’s cloud cover over South Texas would not allow. The company said visibility should improve for Friday’s attempt, with the same 90 minute window opening at 5:45 p.m. CT.

Advertisement

Flight 13 will be the second outing for the V3 versions of Starship and Super Heavy, following their debut on Flight 12 in May. The mission carries 20 production Starlink V3 satellites, the first time SpaceX has flown operational satellites rather than mass simulators on Starship. Six of those satellites are fitted with cameras to inspect the heat shield from a different angle during ascent, giving engineers a second data source beyond the ground imagery the weather is currently blocking.

Booster 20 will attempt a boostback burn and a splashdown landing burn in the Gulf of America, while Ship 40 follows a suborbital trajectory toward a landing in the Indian Ocean. The flight plan largely mirrors Flight 12, though the booster will run a more aggressive ascent burn after max Q this time, and the ship’s heat shield includes load sensing tiles meant to measure stress at the higher dynamic pressure SpaceX is targeting.

If Friday’s attempt succeeds, Flight 13 could be the last suborbital test in the program. SpaceX is already looking to push for an orbital flight on Flight 14.

Continue Reading

Investor's Corner

Tesla stock tumbles after earnings, one of its sharpest single-day declines

Published

on

Credit: Tesla

Tesla stock (NASDAQ: TSLA) endured one of its sharpest single-day declines in years on July 23, tumbling approximately 14.5 percent and closing near $320 after opening the session around $374. The drop erased more than $140 billion in market value amid heavy trading volume and left the shares at multi-week lows.

The sell-off followed the company’s second-quarter 2026 results, released the previous evening. Tesla reported record revenue of $28.2 billion, up 26 percent year over year, driven by a Q2-record 480,126 vehicle deliveries. Energy storage deployments also rose strongly.

Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue

Yet profitability disappointed sharply. Operating income fell 57 percent to $398 million, compressing the operating margin to just 1.4 percent. Non-GAAP earnings per share came in at $0.33, well below the roughly $0.53 analysts had expected. Free cash flow turned negative by $1.1 billion as capital expenditures surged 142 percent to $5.8 billion, largely tied to accelerated spending on artificial intelligence, robotics, and autonomous systems.

The losses on capex were expected, as Tesla said it would be spending heavily in 2026.

Advertisement

Investors also reacted to lingering uncertainty surrounding key product timelines. During the Earnings Call, management reiterated ambitions for Robotaxi deployment and the Optimus humanoid robot, but offered limited new concrete milestones, renewing questions about execution pace that have long accompanied Tesla’s ambitious roadmap.

The magnitude of the decline places it among Tesla’s more severe one-day percentage losses since its 2010 initial public offering. Historically, the two largest single-day drops (split-adjusted) remain September 8, 2020, when shares fell 21.1 percent amid broader market volatility and valuation concerns, and January 13, 2012, with a 19.3 percent plunge during the company’s early growth struggles.

Other notable declines include an 18.6 percent drop on March 16, 2020, at the onset of pandemic-related market turmoil. Thursday’s move ranks roughly ninth on the all-time list but stands out as the steepest in more than a year.

Despite the short-term pain, Tesla’s long-term trajectory has repeatedly recovered from such volatility. The latest results underscore both the strength of its core automotive and energy businesses and the near-term costs of heavy investment in next-generation technologies.

Advertisement
Continue Reading

Elon Musk

Elon Musk is not happy about this Tesla Full Self-Driving approval delay

Published

on

Credit: Tesla

Elon Musk clapped back at France’s decision to withhold the approval for Tesla’s Full Self-Driving (FSD) Supervised system, projecting a clear and blunt message to French Transport Minister Phillippe Tabarot, after he publicly rejected the technology in its current form.

Tabarot outlines several concerns with Tesla Full Self-Driving in a detailed video statement, where he said, “The safety trade-offs are not yet sufficient to authorize it as it currently stands,” he said. He emphasized that FSD is not a true self-driving system and that the driver remains fully responsible.

Key issues Tabarot also brought up included allowing speeding when surrounding traffic exceeds limits and what he believes are insufficient guarantees of driver attention during complex urban maneuvers such as lane changes, intersections, and roundabouts.

Advertisement

While acknowledging technological progress and France’s support for autonomous innovation, Tabarot stressed that deployment must prioritize road safety. He noted ongoing technical discussions with Tesla, the Netherlands, and other European partners, with further ecosystem meetings planned for the fall.

Musk’s rebuke highlights the human cost of regulatory caution. Tesla’s latest safety reports provide compelling data supporting accelerated adoption. In the most recent 12-month period, vehicles using FSD (Supervised) recorded one major collision per approximately 5.1 million miles driven, dramatically better than the U.S. national average of one crash per 698,000 miles.

Even Tesla vehicles driven manually with active safety features outperform the average by a wide margin. These figures come from billions of real-world miles of telemetry, showing FSD vehicles involved in far fewer incidents than both manual Teslas and the broader U.S. fleet.

Critics argue Tesla’s comparisons require careful scrutiny regarding reporting thresholds and fleet demographics, yet the data consistently positions FSD as a potential lifesaver. With road fatalities remaining a leading cause of death worldwide, Musk contends that proven safer technology should not face prolonged bureaucratic hurdles.

France’s measured approach reflects the broader European regulatory caution, which many, especially Musk, have been critical of in the past. However, as autonomous systems from Tesla and competitors like Waymo demonstrate superior safety in independent studies, pressure is mounting for harmonized approvals.

Advertisement

Musk’s warning carries the belief that every month of delay may equate to avoidable tragedies on European roads.

Continue Reading