Tesla/Tornetta: Something's Happening Here...

What it is, ain't exactly clear, but I think it's potentially VFB™️ for Elon.

Wait just a minute, y’all.

Yesterday, I debriefed the known universe of the recently-filed settlement that is now pending approval in the Delaware Court of Chancery in Police & Fire Retirement System of the City of Detroit v. Elon Musk and Tesla, Inc., in front of Chancellor McCormick.

You can find all the details of the settlement that we know at this time below, and you are going to want to get familiar with them, because … folks … there’s something going on here, and we’re going to have to get to the bottom of it.

When you’re done getting up to speed, let’s step back for a minute. As I mentioned, this is the “director compensation” case and there is also the “Elon compensation case” — better known in shorthand as Tornetta for the eponymous rockstar (literal) who is the representative plaintiff in that case. You should also get up to speed on that one, because it’s about to become very, very relevant.

Here, this should help:

Also, it’s obviously time for another debrief of post-trial briefing, not a moment too soon before the post-trial opinion comes out, because I feel like something is very afoot here. I alluded to it last night, but I’m unsettled enough about it to be writing this follow-up post.

I think these cases are incredibly interrelated, and not only because they both relate to executive compensation. There’s something odd going on with this settlement, and I’m going to try to explain why I think that. I’m not saying there’s anything wrong going on, and I’m certainly not accusing anyone of wrongdoing to be clear, so don’t get me wrong. Because there are a lot of ways in which it could be something that’s within the scope of perfectly acceptable behavior under the law, but that also ends up being very … hair-raising, if you know what I mean? Probably not, so please let me explain. (And if you need a free trial, you can score one here. On the other hand, if you simply don’t have means to pay, please respond to the free subscription welcome email and just let me know that.) Let’s dig in.