Bell also alleges that Musk has used coercive tactics to secure stockholder approval for both the reincorporation and the ratification of his compensation package. The suit cites Musk’s January threat to transfer Tesla’s artificial intelligence and robotics technologies to a new company unless he maintained “~25% voting control” at Tesla.
Furthermore, Bell argues that Tesla’s board has not fully disclosed how ratifying the rescinded compensation package will impact the company and its stockholders. He warns of potential “radical tax implications” that could significantly reduce Tesla’s pre-tax profits for the last two years.
The lawsuit seeks to represent a class of Tesla stockholders who are or will be threatened with injury due to the defendants’ alleged wrongful actions. It calls for declaratory judgments stating that Tesla’s proposed redomestication vote violates its charter and that the proposal to ratify Musk’s compensation package is null and void. The suit also seeks damages, litigation costs, attorney fees, and other relief.
