Loading...

Elon Musk’s Lawyers Request $6 Billion in Tesla Shares as Legal Fees

TL;DR

  • Lawyers ask for $6 billion in Tesla shares for legal fees instead of cash, saying it’s linked to benefits and good for taxes.
  • Investors sued Elon Musk over a pay package. Lawyers now want Tesla shares as payment, and Musk calls them “criminals.”
  • Musk, also in a legal battle with OpenAI over AI development, claims shift to profit-driven motives.

Elon, in a significant turn of events regarding his extravagant $55.8 billion compensation plan, legal representatives acting on behalf of Tesla Inc. shareholder Richard Tornetta have taken a rather audacious step. Their latest move involves a request for compensation for their legal services to be paid in the form of Tesla shares.

This request entails around $6 billion worth of equity in the renowned electric vehicle manufacturer. To put this into perspective, the prevailing market valuation of Tesla shares translates to a remarkable hourly rate of $288,888. 

This bold demand underscores the magnitude of Musk’s compensation package and the legal services rendered. By opting for payment in Tesla shares, Tornetta’s lawyers align their interests more closely with Tesla shareholders, potentially influencing the outcome of this high-profile case and its implications for the company’s future.

The legal battle over Elon Musk’s pay package began when Tornetta sued Musk in 2018, alleging that the compensation was excessive. Despite initially contesting Musk’s pay package, the same lawyers seek compensation in Tesla shares. 

They argue that this payment structure directly links their reward to the benefit created and is advantageous for Tesla as it avoids using cash from the company’s balance sheet. Additionally, they highlight that such a payment would be tax-deductible for Tesla.

Background on lawsuits and pending legal issues on Elon Musk

Elon Musk, the renowned entrepreneur and visionary behind companies like Tesla and SpaceX, is embroiled in various legal battles beyond the highly publicized lawsuit concerning his compensation package. One notable case revolves around his co-founded venture, OpenAI, and its alleged deviation from its initial altruistic mission. 

Musk argues that OpenAI, the organization he co-founded, has deviated from its initial purpose of harnessing artificial intelligence (AI) for the betterment of humanity. Instead, Musk alleges that OpenAI is now focusing more on profit-oriented goals rather than philanthropic endeavors. This legal dispute highlights Musk’s concerns and sheds light on broader issues regarding the commercialization of AI technology. It raises questions about the ethical and societal implications of prioritizing financial gains over advancing human interests in artificial intelligence.

As Musk strives to push the boundaries of innovation, these legal entanglements serve as poignant reminders of the complexities inherent in navigating the intersection of technology, ethics, and commerce. With high stakes and far-reaching implications, the outcome of these legal proceedings could significantly shape the trajectory of AI development and its societal impact.

Elon Musk’s response and approval process

Elon Musk’s involvement in the response and approval process regarding a request made by lawyers has drawn significant attention. His criticism of the lawyers’ demand for Tesla shares, branding them as criminals for seeking company shares as payment, has sparked controversy. 

Legal experts closely monitor the case’s developments, emphasizing its importance, especially concerning the extraordinary compensation awarded to an executive. The request for payment in Tesla shares is awaiting approval from Judge Kathaleen McCormick, who has previously voiced concerns regarding Musk’s pay package. 

This legal saga encapsulates broader themes of corporate governance, executive compensation, and the intersection of law and business. Musk’s outspokenness and the legal complexities surrounding the case contribute to its intrigue, prompting discussions about fairness, accountability, and the boundaries of corporate power.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Share link:

Joseph Katala

Joseph is a seasoned professional in the crypto and blockchain industry, boasting over three years of experience. His expertise spans a wide range of roles, from crypto writing and analysis to blockchain development. With a deep passion for the transformative potential of these technologies, he is committed to fostering understanding within the crypto and blockchain spheres through media.

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Related News

Ethereum
Cryptopolitan
Subscribe to CryptoPolitan