When Tesla's Shareholder SUED Elon Musk! | The Neon Show #shorts

Varun Mayya recounts the time when Elon Musk was sued by one of Tesla's shareholders who believed that Elon's proposed pay package was too much!

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[malav_patel]

This guy has no idea … the Delaware Court didn’t invalidate the contract due to the package size. The US Constitution prohibits such intervention in contractual obligations. The court simply required notice to all shareholders who may not have been aware of such contract. It was a problem of disclosure.

[glsaikumar]

This means as an employee if I get irritated, I can resign, then i can buy a couple of shares of that company and sue it in court... 😂😂😂😂

[samgen]

The reason for Delaware court to reject the pay package was the terms not disclosed to shareholders. Once the terms are available and has to go for revote, he should be good.

[erabhikdasgupta]

First its not a parody.

1. The Delaware court said, you can't suddenly give 10% worth of share value to Elon without informing the shareholders and going for a vote. Tesla is not a private company. Everything needs to be disclosed to SEC and such a large decision can't be taken by sitting board because the 600 billion is not someone's private property but people as shareholders has invested in the company.

2. Stop podcasting on things you guys have no idea of. Tomorrow is Adani takes out 60Billion as payout being chairman, whose money is he taking from Adani Enterprise. Public money which public trusted to grow their investments not use it for personal gains. Bank money given out as investments to hep them achive certain company goals.

[anmolt]

Glad to see commenters calling out the BS in this clip

[Sighmacheez]

When you read only the headlines and not the full report.

[sid]

These youtube Podcasters, nodding like chickens, don't know a thing about shareholder rights

[aristomichael]

Bro makes it sound like someone sued out of jealousy after the company achived what he said. Thats not how it went. Immediately after the paypackage was approved, the company got sued. So it was considered too high even when it was considered unachievable by the shareholders.

By the time the judgement came, tesla already dropped 30% from the what they achived due to interest rates, false promises and Elon's behavior. It is still going down as the company's sales numbers and newly launched product is facing issues.

Most importantly, some of the reasons provided in the ruling were really serious. Like the board members of Tesla were all Elon's personal friends with long-term relationship with him. While they were responsible for negotiating a deal with him on shareholders behalf, they actually didnt share acurate information to share holders. It was told every single condition is much difficult to achieve but internal documents revealed tesla was on path to achive some of irrespective of the package.

[imlitaf]

Ummmm
Not necessarily
Telsa had only made like
>20 billion ever
And bro is asking for 60 billion
Bonus.
Valuation of a company is one thing and profit is one thing bonus are traditionally given on basics of profit
Idk if it makes sense 😅
Just my opinion thoo

[bigwig]

Another reason not to follow this guy, he totally changed the whole story. Please everyone go through the full issue of the situation instead of listening to this type of guys.

[sachin]

if the agreement is one sided without disclosing full info judges have the right make it null and void. u cant make agreement and take it fully if its not in free spirit.

[bharatbansal]

First you said, Elon had an agreement with the shareholders. Then you said it was with the board. The board does not represent the shareholders.

[tapaspanigrahi]

Problem is keeping it at 600B and it's actually absurd. However he needs it to get out of Twitter disaster

[dksharron]

He already owned in the neighborhood of 23% of the shares of the company at that time. So, he was getting a huge benefit already, and now taking a chunck of the benefits of the other shareholders as well. Plus, the board are his friends.

[deepakasokan]

It looks like a comedy show from here..

[pinkusagar]

Dude dude dude everything the board agrees may not hold ground in court of law. Did the board and Elon take legal opinion before agreeing ? Pretty sure they thought it's gonna be alright. Sitting from outside and judging a court's order is foolish. The judge said Musk improperly controlled the pay negotiation process and that the shareholders lacked information when they voted in 2018 to approve the package. So please read the verdict and then pass judgement. The board and Elon have right to appeal in higher court.

[viveks]

My friend that’s socialism not capitalism

[commanderx]

The guy who sued him has balls of steel

[piyushkumar-wgcv]

As a person who doesn’t have knowledge of anything, I like how confident he is.

[se]

Thag jealous guy should’ve brought more shares and 10x his money. Haters always going to hate, but its the people who allow it to happen