Tesla Inc. has expressed concerns over the intentions of certain investors regarding their push for a quick court ruling on Elon Musk’s controversial compensation plan. As the date of the upcoming shareholder meeting approaches, the motives behind the accelerated legal proceedings have come under scrutiny.
Tesla Says Investors May Want To Influence Shareholder Vote: Tesla’s Legal Stance on Investor Motives
On Thursday, Tesla’s legal representative, John L. Reed of DLA Piper LLP, voiced apprehensions in a formal letter. Reed highlighted that the request for an early court hearing by the investors was “far in advance” of the scheduled shareholder meeting on June 13. This unusual timing has raised doubts about the investors’ true intentions, suggesting they might be aiming to “elicit commentary” from the court to influence the outcome of the shareholder vote.
Tesla has requested that the court refrain from making any premature judgments or comments on motions not directly before the court. This precaution aims to ensure that the shareholder votes at the annual meeting are not unduly influenced.
Tesla Says Investors May Want To Influence Shareholder Vote: The Court’s Previous Decisions and Ongoing Legal Actions
The legal battles stem from a January court decision that struck down Musk’s 10-year compensation plan, which was originally valued at approximately $56 billion. Following this, Tesla stockholders, represented by a team of class attorneys, asked the court to place tens of billions of dollars in company stock into a trust.
