Investor's Corner
Tesla shareholders are taking a stand against law firm’s $6B TSLA stock request
Is the law firm behind the legal complaint that ultimately rescinded Elon Musk’s 2018 pay package looking to get overpaid? A growing number of Tesla shareholders say so. This is highlighted in a grassroots effort from Tesla stockholders who are currently using their voices to ask Delaware Judge Kathaleen McCormick to deny the request of law firm Bernstein Litowitz Berger & Grossmann, which is demanding a compensation of nearly $6 billion for their services in the case against Musk.
Elon Musk’s 2018 pay package was rescinded by Judge McCormick in late January. The case was filed by a thrash metal drummer and car enthusiast, Richard Tornetta, who held nine TSLA shares when the legal complaint was filed. In a brief, the lawyers noted that they should be compensated in the form of 29 million TSLA shares. The block of TSLA stock would be worth nearly $6 billion, which would translate to an hourly rate of about $288,888.
#DelawareCourt81
letter sent in support of giving the plaintiff's attorneys the reward they deserve: 9 shares. pic.twitter.com/cGWHx5Xxym— James Moore (@russellisright) March 5, 2024
“Plaintiff’s Counsel instead seeks a fee award in kind—a percentage of the shares returned for unrestricted use by Tesla (rather than cash). In other words, we are prepared to ‘eat our cooking.’ 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,” the lawyers wrote in a brief.
#DelawareCourt81
Fullfilled my duty from EUROPE as well ? pic.twitter.com/0fATjfdnvF— SeefyCar (@SeefyCar) March 6, 2024
Elon Musk has responded to the Delaware court’s decision on X, stating that the idea of paying the lawyers behind the case nearly $6 billion in TSLA stock was “criminal.” Musk’s sentiments are understandable, especially since the vast majority of TSLA shareholders did approve his 2018 compensation plan. A number of these shareholders have now decided to make their voices known by sending letters to Judge McCormick explaining that they do not just support Musk’s 2018 pay package — they are also against the idea of paying Bernstein Litowitz Berger & Grossmann nearly $6 billion in TSLA stock.
??#DelawareCourt81 pic.twitter.com/yy8WqewatA— Ale?andra Merz (@TeslaBoomerMama) March 6, 2024
The TSLA shareholders have selected the hashtag #DelawareCourt81 for their movement. A look at the hashtag on X, the social media platform formerly known as Twitter, shows that retail shareholders from all walks of life are now sending letters to Judge McCormick. Some have even sent letters from abroad. Others shared personal stories about how their retirement is tied to TSLA stock, and how a $6 billion TSLA share grant to Bernstein Litowitz Berger & Grossmann would cause them great financial harm.
Ready to ? in the morning. This letter to the Delaware judge highlights these 4 points:#DelawareCourt81
1️⃣ The excessive $6 BILLION in attorney fees lacks transparency and does not benefit shareholders.
2️⃣ The invalidation of Elon Musk’s 2018 pay package is not based on a… pic.twitter.com/3I5Xeq7bDc— Gail Alfar (@GailAlfarATX) March 5, 2024
It remains to be seen if the Tesla shareholders’ efforts would affect Judge McCormick’s final rulings on the matter. But regardless of the Delaware Judge’s decision, the efforts undertaken by the Tesla shareholders deserve a notable amount of praise. Elon Musk seems to appreciate the shareholders’ efforts, at least, as the CEO expressed his thanks in a reply to a shareholder’s post about the initiative.
Bernstein Litowitz Berger & Grossmann’s brief about its request for compensation can be viewed below.
March 1, 2024 – Fee Brief as Filed_Tesla by Simon Alvarez on Scribd
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
Lucid CEO Silvio Napoli responded to rumors of an imminent bankruptcy that was reportedly being mulled after a report stated the automaker was working with the firm AlixPartners to iron out its next steps.
The company felt a massive loss on Wall Street yesterday, as the report essentially pushed the stock down as much as 55 percent on Tuesday.
The report, published initially by Eletric-Vehicles.com, claimed Lucid was essentially in dire straits and was told by AlixPartners, a commonly used restructuring advisor, to either take shares private or file for Chapter 11 bankruptcy protection.
Lucid’s head of Communications, Nick Twork, immediately challenged the report and stated the company “has sufficient liquidity to carry its operations well into next year.”
Now, the company’s CEO is chiming in as well, stating that the report is “so far from the facts that they require a direct response.”
Napoli said:
“Lucid is not considering bankruptcy or a transaction to take the company private. Those reports are false. The Board did not explore either scenario. Period.
As disclosed in our most recent quarterly filing, Lucid has sufficient liquidity to fund its operations well into next year.
We work with outside advisors to improve operational performance and execution. They are not advising Lucid on a take-private transaction or bankruptcy, and any suggestion that they have recommended either course of action to management or the Board is false.
My priority is clear: turn this company around. That is where the leadership team and I are focused.
I look forward to providing a full update during our quarterly earnings call on August 4th.”
🚨 Lucid CEO Silvio Napoli calls rumors of financial issues “so far from the facts that they require a direct response.”
Read his full remarks here: https://t.co/t3Pg1NHvzy pic.twitter.com/LvHUPhO4Qf
— TESLARATI (@Teslarati) July 15, 2026
It seems pretty clear that Lucid is confident things will be okay, and, to be honest, they should not have much to worry about, especially considering the company has been backed by the Saudi Public Investment Fund (PIF) for years. It has solid financial backing, and its sales, while weak, are pretty much right on par with a company of this age.
Lucid also sent a Cease & Desist letter to the publication for their report.
Lucid shares have rebounded nicely and are up nearly 21 percent at the time of publication. As soon as the company dispelled the rumors of bankruptcy yesterday, the stock began to climb back toward more reasonable levels.
Electric vehicle maker Lucid Group has denied rumors of an imminent bankruptcy after a report from this morning sent the stock on a dramatic drop on Wall Street, seeing losses of more than 40 percent during trading hours.
Lucid’s Director of Communications, Nick Twork, responded to the report from Eletric-Vehicles.com, which stated the company’s restructuring advisor, AlixPartners, was asked to review two decisions: taking Lucid shares private or filing for Chapter 11 bankruptcy protection.
The report also claims AlixPartners told the Lucid board to “concentrate on Gravity production while improving its quality, and to temporarily hold back the Lucid Air, the sedan that has defined the company since its launch.”
Twork said:
$LCID The rumors are completely false. The company has sufficient liquidity to carry its operations well into next year, as recently published in its last quarterly filings, and it has not formed any special Board committee to explore the scenarios reported today. Our focus is…
— Nick Twork (@ntwork) July 14, 2026
Shares rebounded after the response to the report, halving its losses as the trading day neared 3 p.m. Eastern.
Lucid has struggled to get its sales off the ground and into more respectable numbers, but the company is in its early years, when things are hard to begin with. It is also backed by several notable investors, including the Saudi Public Investment Fund (PIF), which has nearly limitless money and likely would not ditch an investment of this size so soon.
Lucid shares were down just 14 percent at the time of publication, a far cry from the 55 percent its losses topped out at during the day.
Tesla received a price target upgrade just on the heels of what was a crazy successful quarter for its automotive business, as the company reported a delivery beat of over 15 percent for Q2.
Jefferies analysts are upping Tesla’s price target (NASDAQ: TSLA) to $400 from $375, while maintaining their “Hold” rating on shares, and the strong automotive deliveries from Q2 is a big reason. However, there are some other catalysts that Jefferies believes position Tesla for a strong position in the second half of the year.
Strong Deliveries
Tesla reported 480,000 deliveries for Q2, while Wall Street was between 395,000 and 405,000, as an overall consensus. It was an incredibly strong quarter from a delivery perspective, and Tesla sold well more than it produced during the three months.
Tesla crushes Wall Street expectations, beats delivery estimates by over 15 percent
While vehicle deliveries are not necessarily looked at in the light that they used to be, Tesla still maintains a lot of advantages for keeping deliveries strong. With the loss of the $7,500 EV Tax Credit last year, Tesla still maintains a strong demand case for its EVs.
Robotaxi Performance
Tesla has been operating Robotaxi for over a year now, as it launched in Austin in mid-2025. That program has expanded to Houston and Dallas, the San Francisco Bay Area, and, most recently, Miami, Florida, the suite’s first appearance in the Sunshine State.
While the Robotaxi suite is still in its early phases and Tesla is working through things like fleet size and wait times, the company has been able to undercut the pricing of its competitors and has a great safety record.
Merger Speculation with Tesla and SpaceX
This is perhaps the biggest topic that many are speaking about with Tesla and SpaceX, and it is the one thing that seems to be on the mind of every investor.
Jefferies warns that growing talk of a Tesla-SpaceX merger could cause Tesla stock to trade more like a SpaceX proxy, which may disconnect it from underlying automotive fundamentals. SpaceX has a lot going for it, especially its compute deals that have been widely publicized as of late.
Profitability in New Projects Could Take Some Time
Tesla has a few long-term ventures in the pipeline, most notably the Optimus project and Robotaxi, which is launched but will take several years to expand to a meaningful level that resonates with everyday people.
This is something that investors need to be careful of. Tesla’s projects could take some time to round out, so Jefferies advises that these may carry initial losses, rather than immediate profit. Seasoned Tesla investors have echoed something like this for a long time; they knew going in it would not be an open-and-shut strategy. It was going to take time.
These new projects are no different.
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