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Tesla news! WHEEEEEE!
Apr. 17th, 2024 12:51 pmAs expected, in light of the Delaware Chancery Court shooting down The Muskbrat's compensation plan, he's following through on his threat to put reincorporating Tesla in Texas up to a vote. Tesla is having its annual shareholders meeting, where such things are voted on, in mid-June, so such things are filed and announced now. Also up for vote - his pay package of $56 billion! YAY!
Now, the amusing bit was that the reincorporation and pay package were decided by a "Special Committee" which consisted of ... drum roll please ... one person. An attorney who joined the board late December 2018, Kathleen Wilson-Thompson. She is a qualified attorney, at least in terms of degrees and such, and she received over $7,000,000 in stock and compensation the following year for serving on the board.
The Chancery Judge threw out The Muskbrat's compensation package because the Board, in the Judge's words, 'were beholden' to him. How is receiving seven mill in pay and stock not beholden?
It'll be interesting to see if the votes pass. While lots of stockholders are fan bois, there are also large blocks owned by institutional investors, and they're a lot more conservative about things.
And one other thing. He's PO'd about the Chancery Judge shooting down his compensation, also about the Chancery Court forcing him to buy Twitter after he promised to. Those are the main forces behind reincorporating in Texas. But here's the thing: Texas is creating a system very much modeled on the Delaware Chancery Court system! Aside from travel costs, is he going to be gaining very much?
https://arstechnica.com/tech-policy/2024/04/tesla-asks-shareholders-to-approve-texas-move-and-restore-elon-musks-56b-pay/
A second article on the incorporation move has some very interesting information about Egon's, err, Elon's companies dealings with each other, and this interesting paragraph:
Over eight weeks, Wilson-Thompson’s committee met 16 times for more than 26 hours, and Tesla says she personally spent “more than 200 hours” working on the matter. The Sidley lawyers spent “more than 600 hours each” on the matter and were supported by “more than 40 other Sidley lawyers.” Through this process, seven board directors and five members of Tesla’s management were interviewed.
THAT is a LOT of billable hours!
A paragraph preceding stated that they found that most corporations incorporate where they're located or in Delaware. Geez, pay me $100k and I'll tell you that! Look at how much money you'd save!
https://techcrunch.com/2024/04/17/tesla-x-advertising-musk-stock-package-delware-texas/
Tesla CyberTruck owners: manufacturing has been suspended while Tesla deals with problems regarding the accelerator peddle. There have been reports of the peddle coming loose, including parts of it jamming itself under trim panels and unintended acceleration, including one owner slamming into a light pole! Tesla's taking some time off to implement fixes.
Honestly, they have LOTS of fixes to implement with people complaining about fit and finish, not to mention the rust problem of stainless steel that doesn't have a clear coat applied.
https://arstechnica.com/cars/2024/04/tesla-stops-cybertruck-deliveries-accelerator-pedal-may-be-to-blame/
And finally, Tesla is getting ready to axe TEN PERCENT of its workforce! Now, when numbers like that are about to get the RIF, I think you're at the point that the Feds are involved as that's a major labor market disruption, we'll see what happens.
Tesla's stock has been underperforming of late. While it's up over 600% since 2018, it's down over a third this year to date, and we're only a third into the year. The CyberTruck (AKA the Incel Camino, not my creation) has been a major thorn in its side, the constant price-cutting has really hurt its margins, and now the Model 2 has been axed in favor of a 'Robo Taxi' that hasn't been seen - and with the amazing success of its Auto Pilot, may never be. The Model 2 was supposed to be an actual low-cost model, but rumor has it would not be sold in the USA.
Let's see. CyberTruck: ugly design and bad manufacturing, own goal. Constant price-cutting to prop up market share, own-goal. Dropping a product line in favor of what seems to be vaporware that will run on vaporware, own-goal.
I think I see a trend here.
https://arstechnica.com/cars/2024/04/tesla-to-lay-off-more-than-10-percent-of-its-workers-as-sales-slow/
Oh, and Egon says he'll debut the RoboTaxi on August 8. Set your sundial!
https://techcrunch.com/2024/04/05/elon-musk-says-hell-unveil-a-tesla-robotaxi-on-august-8/
In other news, for which I don't have a link handy, Tesla is trying to push sales of Autopilot by giving every Tesla owner a free 30 day trial every time you take your car in for service with a requirement that a salesman shows you how utterly spiffy it is! I'm just wondering if it will automatically charge your credit card X thousands of dollars if you don't cancel it before your month is up.
Now, the amusing bit was that the reincorporation and pay package were decided by a "Special Committee" which consisted of ... drum roll please ... one person. An attorney who joined the board late December 2018, Kathleen Wilson-Thompson. She is a qualified attorney, at least in terms of degrees and such, and she received over $7,000,000 in stock and compensation the following year for serving on the board.
The Chancery Judge threw out The Muskbrat's compensation package because the Board, in the Judge's words, 'were beholden' to him. How is receiving seven mill in pay and stock not beholden?
It'll be interesting to see if the votes pass. While lots of stockholders are fan bois, there are also large blocks owned by institutional investors, and they're a lot more conservative about things.
And one other thing. He's PO'd about the Chancery Judge shooting down his compensation, also about the Chancery Court forcing him to buy Twitter after he promised to. Those are the main forces behind reincorporating in Texas. But here's the thing: Texas is creating a system very much modeled on the Delaware Chancery Court system! Aside from travel costs, is he going to be gaining very much?
https://arstechnica.com/tech-policy/2024/04/tesla-asks-shareholders-to-approve-texas-move-and-restore-elon-musks-56b-pay/
A second article on the incorporation move has some very interesting information about Egon's, err, Elon's companies dealings with each other, and this interesting paragraph:
Over eight weeks, Wilson-Thompson’s committee met 16 times for more than 26 hours, and Tesla says she personally spent “more than 200 hours” working on the matter. The Sidley lawyers spent “more than 600 hours each” on the matter and were supported by “more than 40 other Sidley lawyers.” Through this process, seven board directors and five members of Tesla’s management were interviewed.
THAT is a LOT of billable hours!
A paragraph preceding stated that they found that most corporations incorporate where they're located or in Delaware. Geez, pay me $100k and I'll tell you that! Look at how much money you'd save!
https://techcrunch.com/2024/04/17/tesla-x-advertising-musk-stock-package-delware-texas/
Tesla CyberTruck owners: manufacturing has been suspended while Tesla deals with problems regarding the accelerator peddle. There have been reports of the peddle coming loose, including parts of it jamming itself under trim panels and unintended acceleration, including one owner slamming into a light pole! Tesla's taking some time off to implement fixes.
Honestly, they have LOTS of fixes to implement with people complaining about fit and finish, not to mention the rust problem of stainless steel that doesn't have a clear coat applied.
https://arstechnica.com/cars/2024/04/tesla-stops-cybertruck-deliveries-accelerator-pedal-may-be-to-blame/
And finally, Tesla is getting ready to axe TEN PERCENT of its workforce! Now, when numbers like that are about to get the RIF, I think you're at the point that the Feds are involved as that's a major labor market disruption, we'll see what happens.
Tesla's stock has been underperforming of late. While it's up over 600% since 2018, it's down over a third this year to date, and we're only a third into the year. The CyberTruck (AKA the Incel Camino, not my creation) has been a major thorn in its side, the constant price-cutting has really hurt its margins, and now the Model 2 has been axed in favor of a 'Robo Taxi' that hasn't been seen - and with the amazing success of its Auto Pilot, may never be. The Model 2 was supposed to be an actual low-cost model, but rumor has it would not be sold in the USA.
Let's see. CyberTruck: ugly design and bad manufacturing, own goal. Constant price-cutting to prop up market share, own-goal. Dropping a product line in favor of what seems to be vaporware that will run on vaporware, own-goal.
I think I see a trend here.
https://arstechnica.com/cars/2024/04/tesla-to-lay-off-more-than-10-percent-of-its-workers-as-sales-slow/
Oh, and Egon says he'll debut the RoboTaxi on August 8. Set your sundial!
https://techcrunch.com/2024/04/05/elon-musk-says-hell-unveil-a-tesla-robotaxi-on-august-8/
In other news, for which I don't have a link handy, Tesla is trying to push sales of Autopilot by giving every Tesla owner a free 30 day trial every time you take your car in for service with a requirement that a salesman shows you how utterly spiffy it is! I'm just wondering if it will automatically charge your credit card X thousands of dollars if you don't cancel it before your month is up.
