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Lawsuit Against Tesla and Elon Musk Not Only Robs Elon Musk, It Robs Tesla Shareholders of $6 Billion In "Legal Fees"

There's now a $6 billion ask in "legal fees" as Tesla stock from the lawyers involved in the Delaware trial that robbed Elon Musk of his 2018 compensation package for Tesla. This is beyond wrong.
Lawsuit Against Tesla and Elon Musk Not Only Robs Elon Musk, It Robs Tesla Shareholders of $6 Billion In "Legal Fees"

Tesla and Elon Musk Lawsuit

In a Delaware lawsuit against Elon Musk and Tesla, Elon Musk was first robbed of his 2018 compensation package. Now, the lawyers in that lawsuit are asking for about $6 billion in Tesla stock as a legal fee. This is beyond wrong and criminal.

This whole Delaware lawsuit is highway robbery, plain and simple. First, Elon Musk was robbed of his 2018 compensation package and has been working for free since then. Second, the lawyers involved are asking for $6 billion in Tesla stock as "legal fees" further robbing all investors in Tesla.

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Outrageous Legal Fees

I don't know how the lawyers came up with $6 billion in this trial, when a good lawyer goes for about $1,000 per hour.

Alex on X says:

This is totally messed up and hopefully will be appealed and never get approved.

What has happened to the USA that such legal proceedings and payments of this amount to lawyers are even conceivable without any meaningful reason?

It is an insult to the owners of Tesla and the management who have democratically decided how they want to pay their CEO.

This is a sad day for the U.S. that this kind of thing can happen. However, I have a feeling that Elon Musk and Tesla won't go down quietly.

Amy on X said the following about this lawsuit:

DILUTION: The grant in shares will dilute shareholders’ votes doesn’t matter if the attorneys keep the shares or sell them.. (Further obliterating shareholder franchise). And if the attorneys dump billions in stock on the market, the stock price will face downward pressure.

6 BILLION IS EGREGIOUS: Shares IS NOT “in kind” to a stock options. Options have risk (they are worthless if the market cap doesn’t go up); and they have to be purchased at the strike price. The attorneys aren’t going to buy the shares—they want a block of 29 Million shares of TSLA given to them for a 5 day trial, or over 1 Billion/trial day. A payout of 6 Billion (shares or cash) IS harmful to shareholders. We lose either no matter what—if cash, it isn’t spent on growth; if shares, diluted voting power & possible stock price pressure. Shareholders Lose/lose/lose.

HOSTILE FORCE: There is NO PRECEDENT for plaintiffs attorneys to become a major shareholder in the company that they just sued. Attorneys have an adversarial relationship. These attorneys don’t believe in Tesla or Tesla management or the Tesla Board or Elon Musk. Existing Shareholders bought TSLA stock to invest in Elon Musk. We are opposite in our views.

LARGE VOTING BLOCK: 29 Million shares would give these attorneys a larger stake than each of these institutional investors: Ark, Baron Funds, Charles Schwab, UBS, Goldman Sachs, Baille Gifford, Mellon, and T Rowe Price. And 29 Million shares crushes retails voting power.

SHAREHOLDER RIGHTS: Shareholder sanctity means the Court is not supposed to create shareholder dilution—especially by just giving a large block of shares to a hostile entity that will vote in opposition to existing shareholders on key votes —like moving Tesla out of Delaware, affirming the current Board, and the new comp plan.

If this kind of thing can happen and actually goes through, then what else can happen to Tesla? Will it be meticulously taken apart by those with ill intent?

For Further Reading: Tesla Reported To Be In Talks About Building a Gigafactory In Italy

What do you think about this lawsuit against Tesla and Elon Musk in Delaware? Is it fair that Elon Musk no longer has his 2018 compensation package and that the lawyers are asking for $6 billion in Tesla stock as "legal fees"?

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Hi! I'm Jeremy Noel Johnson, and I am a Tesla investor and supporter and own a 2022 Model 3 RWD EV and I don't have range anxiety :). I enjoy bringing you breaking Tesla news as well as anything about Tesla or other EV companies I can find, like Aptera. Other interests of mine are AI, Tesla Energy and the Tesla Bot! You can follow me on X.COM or LinkedIn to stay in touch and follow my Tesla and EV news coverage.

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Article Reference: Elon Musk On X | Amy On X | Alex on X

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