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Tesla investor’s legal team urges DE court to respect Musk pay ratification vote

Credit: Andrea Conway/X

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Tesla shareholders ratified Elon Musk’s 2018 CEO Performance Award at the 2024 Cyber Roundup, but the fight about the matter in Delaware Court is not over just yet. This was highlighted in a joinder filed by the legal team of a TSLA investor who decided to challenge the astronomical fee request of the lawyers of shareholder Richard Tornetta, who filed a legal complaint about Musk’s 2018 pay package at a time when he held just nine shares of the EV maker. 

Tornetta’s legal team has argued that they deserve to be paid over 29 million shares of TSLA for their services in the case, which translated to over $5 billion at the time or over $200,000 per hour. Tesla shareholder Amy Steffens, a longtime investor of Tesla with over 19,000 shares, secured her own legal team to challenge the fee request of Tornetta’s lawyers. Following the decision of Tesla investors to ratify Musk’s pay package at the 2024 Cyber Roundup, Tornetta’s legal team argued that the ratification of the CEO’s pay package was invalid since investors were still “coerced” and “uninformed.” The lawyers also described the events that transpired leading up to the ratification of Musk’s pay package as a “clown show.” 

Steffens’ legal team has now submitted a joinder for the case, which will hopefully be heard later this week when the court is expected to hold a hearing for the motion to reconsider the Delaware Judge’s preliminary ruling in the case. The joinder, parts of which were shared on X by Tesla investor Alexandra Merz, argued that the ratification of Musk’s pay package by TSLA shareholders showed that Tornetta’s complaint against the CEO Performance Award “provided no tangible economic benefit to Tesla or its stockholders.” Steffens’ legal team also highlighted that contrary to the claims of Tornetta’s lawyers, the shareholder vote on Musk’s pay plan is likely among the most informed stockholder votes in Delaware history. 

“The Ratification Vote was fully informed indeed, it is likely among the most informed votes in Delaware corporate history. The extensive proxy filings included this Court’s rescission opinion, so Tesla’s stockholders were well aware of the issues identified by this Court prior to their ratification vote. The ratification issue was robustly debated online, on television, and in newspapers. Opponents— including Mr. Tornetta’s experts in this litigation made their voices heard.’ When the votes came in, Mr. Tornetta lost decisively: 72% of disinterested voting shares favored ratification,” the lawyers wrote. 

Steffens’ legal team also addressed the “clown show” comment from Tornetta’s attorneys. “Mr. Tornetta’s counsel disparages this exercise of stockholder democracy as a ‘clown show.’ It is anything but. Ms. Steffens and Tesla’s other stockholders had all the relevant facts before them, including this Court’s decision, and determined that the 2018 Grant benefited them more than rescission. When stockholders freely petition their elected board for a vote, and then overwhelmingly affirm a board’s decision by voting to uphold it, further litigation by a derivative plaintiff attacking that democratically determined result is neither necessary nor appropriate,” Steffens’ legal team noted.

The longtime Tesla investors’ legal team urged the court to respect TSLA stockholders’ democracy as well. “Even beyond Due Process concerns, respect for stockholder democracy commends limiting Plaintiff’s continuing role in light of the Ratification Vote. Here, the question goes beyond Mr. Tornetta’s adequacy to the source of his authority. When Mr. Tornetta steps into the shoes of Tesla as a derivative plaintiff, he does so without democratic legitimacy. Tesla’s stockholders can vote out their directors, but they lack any democratic means to revoke Mr. Tornetta’s authority as a plaintiff. 

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“Ms. Steffens respectfully suggests that in this specific context-where a supermajority of fully-informed, uncoerced stockholders unambiguously repudiates the relief obtained by a derivative plaintiff-the Court should treat this as a vote of no confidence and withdraw Mr. Tornetta’s authority to act on behalf of the Company. At the very least, where a plaintiff has shown himself willing to pay his counsel hundreds of thousands of dollars per hour to engage in legal work that conflicts directly with the wishes of the vast majority of stockholders, those stockholders should have some means (through the ballot box or the courtroom) to eliminate that plaintiff’s authority to continue to engage in such damaging conduct while purporting to act on their behalf,” the longtime TSLA shareholder’s legal team wrote. 

Tesla CEO Elon Musk seems to have appreciated the efforts of the TSLA stockholder’s legal team. Responding to a post about the matter on social media platform X, Musk responded to the shareholder’s efforts with a couple of “lit” emojis. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla Assisted Driving expands to tenth EU country

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Tesla has expanded its Tesla Assisted Driving (TAD) suite to its tenth European country, as Latvia joined a growing list of European Union member states authorizing the company’s advanced driver assistance technology.

Tesla Europe announced this morning that the system is now approved in Latvia, with a software rollout to begin soon.

The approval and rollout follow recognition of a provisional European type approval originally granted by the Netherlands’ RDW authority on April 10.

Latvia’s Road Traffic Safety Directorate (CSDD) evaluated the Dutch documentation, coordinated with the other national authorities, and reviewed updates from Tesla. These included tightened limits on speed offsets, automatic resets of any manual speed adjustments after each trip, and stronger driver monitoring.

In Europe, the feature is marketed as Tesla Assisted Driving after a recent rule change that labeled the name “Full Self-Driving” as misleading.

Tesla starts showing how FSD will change lives in Europe

The system remains an SAE Level 2 driver assistance tool, not unsupervised autonomy. It can control speed, steering, braking, lane changes, and intersections while following a navigation route. Drivers need not keep their hands on the wheel at all times, yet they must continuously monitor the road and be prepared to intervene immediately.

The sequence of EU recognitions began with the Netherlands in April and continued through Lithuania, Estonia, Denmark, Belgium, Slovenia, Czechia, Croatia, and Slovakia. Most have relied on mutual recognition of the single Dutch provisional approval rather than independent national testing.

These national clearances do not yet constitute bloc-wide authorization. An EU-wide decision requires a qualified majority in the Technical Committee on Motor Vehicles: at least 15 of 27 member states representing 65 percent of the EU population. Larger markets, like Germany, France, and Italy, remain under review, and a vote is expected this December.

However, for Latvian Tesla owners with compatible vehicles and software, the imminent rollout expands access to the supervised system while underscoring that attentive human oversight remains essential.

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Tesla expands Robotaxi geofence in Houston with an ode to SpaceX merger

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Tesla expanded its Robotaxi geofence in Houston, Texas, today, enlarging the service area and drawing a new rocket-shaped boundary across the city’s northwestern and central parts.

Although CEO Elon Musk said it was just a coincidence, the expansion seems to be an ode to SpaceX and its potential merger with Tesla.

The official Tesla Robotaxi account announced the change with the lines “Houston, we have liftoff” and “Bigger service area now live,” pairing them with a map overlay.

The prior white geofence, roughly 25 square miles covering Jersey Village, Harvest Bend, and the Willowbrook corridor along U.S. 290 and State Highway 249, now sits inside a larger blue zone that stretches southeast toward Bellair and closer to central Houston.

Houston’s Robotaxi service launched on April 18, 2026, the same day as Dallas, as Tesla’s first unsupervised public expansion beyond Austin. From the start, the vehicles were Model Ys running without anyone in the front seats, booked through the dedicated Tesla Robotaxi app and open to the public inside the geofence.

Trackers measured the initial zone at about 25 square miles; by late September it had not grown substantially. Community and registry data indicated a modest local fleet of unsupervised Model Ys, while dozens to nearly 200 Cybercabs, the purpose-built, steering-wheel-free two-seaters, have been spotted staging and testing in Houston lots, though public Cybercab rides remain limited to Austin for now.

Across the broader Robotaxi program, Tesla began public Robotaxi rides in Austin in June 2025, as a small geofence and vehicles with safety monitors became available for a ride-hailing service. Later on, Tesla removed the monitors and steadily expanded the service area until it covered most of the Austin metro area.

Unsupervised Robotaxi services now run in six cities: Austin, Dallas, Houston, Miami, Orlando, and Tampa. Cumulative driverless miles reported by the company have reached several million. The Cybercab entered public service in Austin in early September 2026 and has scaled rapidly there. The company has also said that Dallas is next for Cybercab rides in November, with further cities and 24/7 hours targeted by year-end, plus fleet-operator sales of the vehicle.

Waymo also operates a fully driverless service in Houston, which has been open to the public since August of this year.

The Houston expansion continues Tesla’s pattern of starting with tightly controlled validation zones before widening coverage as real-world data accumulates, while the rocket motif on the map underscores the company’s habit of injecting visual flair into its autonomy rollout.

Riders inside the new boundary can request unsupervised Model Y trips in the Robotaxi app; exact operating hours and further Cybercab availability remain subject to app updates and company statements.

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Tesla Cybercabs take over Austin’s F1 weekend

Tesla Cybercabs swarmed Austin’s F1 Grand Prix as sightings hit a record during race weekend.

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Tesla’s driverless Cybercabs used the Formula 1 United States Grand Prix in Austin as their biggest public stress test yet. On Sunday afternoon, Tesla head of AI software Ashok Elluswamy quoted a photo from X user Ben Steindl showing a long line of gold Cybercabs and Model Y Robotaxis stacked up on a road near Circuit of the Americas. “Robotaxis as far as the eye can see!” Elluswamy wrote. Steindl’s original post was more matter of fact: “@Tesla @robotaxi is busy for the Austin F1.”

The fleet also handled the trip home. The race started at 3 p.m. Central, and once it ended, Cybercab Spotter, an account that logs Cybercab sightings around Austin, posted that “People are requesting Cybercabs to get home.”

Tesla set this up days in advance without announcing it. Late on October 22, rider David Moss posted Robotaxi app screenshots showing the Austin service area wrapping around the track toward Elroy and FM 812, with ride requests open until 1 a.m. A banner in the app read “Last call is 1am · Limited to nearby dropoffs.” Austin rides ended at 11 p.m. as recently as early October, as Teslarati reported, before moving to midnight on October 17.

Not every rider got dropped at the gate. Early app searches showed spots like COTA Karting as “Service blocked,” and one rider who took a Cybercab to the track Friday said the rideshare area was less than a 20 minute walk from the front gate.

The weekend also produced a new activity record. Cybercab Spotter counted 1,250 Cybercab sightings in Austin on Saturday, qualifying day. The previous high was 1,072 on October 16. Sightings count the same car more than once, so they measure how busy the fleet is rather than how big it is. For size, the Texas automated vehicle registry listed 463 Cybercabs at midday Sunday, up from the 300+ Tesla claimed on October 10, when Elluswamy also said Dallas is next for Cybercab.

The track was out of reach for Tesla’s main rival. Waymo runs in Austin only through Uber, and its service area stops well short of COTA. Waymo did not announce any race day service.

Tesla has not said how many rides it gave to and from the circuit, or whether the expanded zone and 1 a.m. cutoff will stay after race weekend. On the third quarter earnings call, Elluswamy said 2 a.m. service is coming “pretty soon” and that Tesla plans to run Robotaxi around the clock before the end of the year. The company is also aiming to hand the first Cybercabs to customers before 2026 ends, which would put cars like these outside Tesla’s own fleet for the first time.

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