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Tesla investor’s legal team urges DE court to respect Musk pay ratification vote
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.
2/ pic.twitter.com/yR15N66cbM— Ale?andra Merz ?? (@TeslaBoomerMama) July 30, 2024
“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.
4/ pic.twitter.com/xc0k1Zsq9A— Ale?andra Merz ?? (@TeslaBoomerMama) July 30, 2024
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.
??— Elon Musk (@elonmusk) July 30, 2024
“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.
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Elon Musk
Tesla Terafab set for launch: Inside the $20B AI chip factory that will reshape the auto industry
Tesla set to launch “Terafab Project: A vertically integrated chip fabrication effort combining logic processing, memory, and advanced packaging.
Tesla is making one of the boldest bets in its history. On March 14, Elon Musk posted on X that the “Terafab Project launches in 7 days,” pointing to March 21, 2026 as the start date for what he has described as a vertically integrated chip fabrication effort combining logic processing, memory, and advanced packaging.
Tesla first confirmed Terafab on its January 28, 2026 earnings call, where Musk told investors the company needs to build a chip fabrication facility to avoid a supply constraint projected to materialize within three to four years. But the seeds were planted even earlier. At Tesla’s annual general meeting last year, Musk warned that even in the best-case scenario for chip production from their suppliers, it still wouldn’t be enough, and declared that building a “gigantic chip fab” simply had to be done.
While there has been no official announcement on where Tesla plans to break ground on the massive Terafab, all signs point to the North Campus of Giga Texas in Austin.
Months of speculation has surrounded Tesla’s North Campus expansion at Giga Texas, where drone footage captured by observer Joe Tegtmeyer revealed massive construction site preparation just north of the existing factory on a scale that rivals the original Giga Texas footprint itself.
Samsung’s Tesla AI5/AI6 chip factory to start key equipment tests in March: report
The project is projected to produce 100–200 billion AI and memory chips annually, targeting 100,000 wafer starts per month, at an estimated cost of $20 billion. Tesla is targeting 2-nanometre process technology and anticipated to be the most advanced node currently in commercial production. Dubbed the Tesla AI5 chip, the chip will pack 40x–50x more compute performance and 9x more memory than AI4, and will be among the first products Terafab factory is set to produce. This highly optimized, and massively powerful inference chip is designed to make full self-driving (FSD) and Tesla’s Optimus robots faster, safer, and with full autonomy.
(Credit: Tesla)
This is where Terafab becomes a genuine game-changer. If Tesla successfully builds a 2nm chip fab at scale, it becomes one of only a handful of entities that’s capable of producing AI silicon in-house, with competitive implications that extend far beyond Tesla’s own vehicles, and potentially positioning Tesla as a chip supplier or licensor to other industries.
Credit: @serobinsonjr/X
The next-gen Tesla AI chips will power advancements in Full Self-Driving software, the Cybercab Robotaxi program, and the Optimus humanoid robot line. Musk’s projections for Optimus require chip volumes that no existing external supplier can commit to on Tesla’s timeline.Competitors like Waymo and GM’s Cruise remain dependent on third-party silicon, leaving them exposed to the same supply chain vulnerabilities Tesla is now working to eliminate entirely.
The Terafab launch this week may not mean a factory opens its doors overnight, but it signals Tesla is serious about owning the entire AI stack, from software to silicon.
Elon Musk
What is Digital Optimus? The new Tesla and xAI project explained
At its core, Digital Optimus operates through a dual-process architecture inspired by human cognition.
Tesla and xAI announced their groundbreaking joint project, Digital Optimus, also nicknamed “Macrohard” in a humorous jab at Microsoft, earlier this week.
This software-based AI agent is designed to automate complex office workflows by observing and replicating human interactions with computers. As the first major outcome of Tesla’s $2 billion investment in xAI, it represents a powerful fusion of hardware efficiency and advanced reasoning.
At its core, Digital Optimus operates through a dual-process architecture inspired by human cognition.
Macrohard or Digital Optimus is a joint xAI-Tesla project, coming as part of Tesla’s investment agreement with xAI.
Grok is the master conductor/navigator with deep understanding of the world to direct digital Optimus, which is processing and actioning the past 5 secs of…
— Elon Musk (@elonmusk) March 11, 2026
Tesla’s specialized AI acts as “System 1”—the fast, instinctive executor—processing the past five seconds of real-time computer screen video along with keyboard and mouse actions to perform immediate tasks.
xAI’s Grok model serves as “System 2,” the strategic “master conductor” or navigator, providing high-level reasoning, world understanding, and directional oversight, much like an advanced turn-by-turn navigation system.
When combined, the two can create a powerful AI-based assistant that can complete everything from accounting work to HR tasks.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
The system runs primarily on Tesla’s low-cost AI4 inference chip, minimizing expensive Nvidia resources from xAI for competitive, real-time performance.
Elon Musk described it as “the only real-time smart AI system” capable, in principle, of emulating the functions of entire companies, handling everything from accounting and HR to repetitive digital operations.
Timelines point to swift deployment. Announced just days ago, Musk expects Digital Optimus to be ready for user experience within about six months, targeting rollout around September 2026.
It will integrate into all AI4-equipped Tesla vehicles, enabling parked cars to handle office work during downtime. Millions of dedicated units are also planned for deployment at Supercharger stations, tapping into roughly 7 gigawatts of available power.
Oh and it works in all AI4-equipped cars, so your car can do office work for you when not driving.
We’re also deploying millions of dedicated Digital Optimus units in the field at Superchargers where we have ~7 gigawatts of available power.
— Elon Musk (@elonmusk) March 12, 2026
Digital Optimus directly supports Tesla’s broader autonomy strategy. It leverages the same end-to-end neural networks, computer vision, and real-time decision-making tech that power Full Self-Driving (FSD) software and the physical Optimus humanoid robot.
By repurposing idle vehicle compute and extending AI4 hardware beyond driving, the project scales Tesla’s autonomy ecosystem from roads to digital workspaces.
As a virtual counterpart to physical Optimus, it divides labor: software agents manage screen-based tasks while humanoid robots tackle physical ones, accelerating Tesla’s vision of general-purpose AI for productivity, Robotaxi fleets, and beyond.
In essence, Digital Optimus bridges Tesla’s vehicle and robotics autonomy with enterprise-scale AI, promising massive efficiency gains. No other company currently matches its real-time capabilities on such accessible hardware.
It really could be one of the most crucial developments Tesla and xAI begin to integrate, as it could revolutionize how people work and travel.
News
Tesla adds awesome new driving feature to Model Y
Tesla is rolling out a new “Comfort Braking” feature with Software Update 2026.8. The feature is exclusive to the new Model Y, and is currently unavailable for any other vehicle in the Tesla lineup.
Tesla is adding an awesome new driving feature to Model Y vehicles, effective on Juniper-updated models considered model year 2026 or newer.
Tesla is rolling out a new “Comfort Braking” feature with Software Update 2026.8. The feature is exclusive to the new Model Y, and is currently unavailable for any other vehicle in the Tesla lineup.
Tesla writes in the release notes for the feature:
“Your Tesla now provides a smoother feel as you come to a complete stop during routine braking.”
🚨 Tesla has added a new “Comfort Braking” update with 2026.8
“Your Tesla provides a smoother feel as you come to a complete stop during routine braking.” https://t.co/afqCpBSVeA pic.twitter.com/C6MRmzfzls
— TESLARATI (@Teslarati) March 13, 2026
Interestingly, we’re not too sure what catalyzed Tesla to try to improve braking smoothness, because it hasn’t seemed overly abrupt or rough from my perspective. Although the brake pedal in my Model Y is rarely used due to Regenerative Braking, it seems Tesla wanted to try to make the ride comfort even smoother for owners.
There is always room for improvement, though, and it seems that there is a way to make braking smoother for passengers while the vehicle is coming to a stop.
This is far from the first time Tesla has attempted to improve its ride comfort through Over-the-Air updates, as it has rolled out updates to improve regenerative braking performance, handling while using Full Self-Driving, improvements to Steer-by-Wire to Cybertruck, and even recent releases that have combatted Active Road Noise.
Tesla holds a unique ability to change the functionality of its vehicles through software updates, which have come in handy for many things, including remedying certain recalls and shipping new features to the Full Self-Driving suite.
Tesla seems to have the most seamless OTA processes, as many automakers have the ability to ship improvements through a simple software update.
We’re really excited to test the update, so when we get an opportunity to try out Comfort Braking when it makes it to our Model Y.
Tesla Terafab set for launch: Inside the $20B AI chip factory that will reshape the auto industry
What is Digital Optimus? The new Tesla and xAI project explained
