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