‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInSEC Is Running Out of Options to Rein In Elon Musk – WSJ
Many small shareholders revel in Mr. Musk’s willingness to stiff-arm regulators. Others are weary of the spectacle. Ross Gerber, chief executive of Gerber Kawasaki Wealth and Investment Management, a Tesla shareholder, said he would like to see the company’s board of directors step in to moderate Mr. Musk’s behavior on Twitter. “I’m disappointed with the […]
Elon Musk Is Out of Control: It’s the General Counsel’s Fault, Suit Alleges | Corporate Counsel
A newly unsealed lawsuit alleging that Tesla Inc.’s board of directors failed to appoint a general counsel who could stand up to controversial CEO Elon Musk highlights the limited options that company counsel have when dealing with difficult bosses. Tesla investor Chase Gharrity alleges, in a derivative suit filed in the Delaware Court of Chancery, […]
“Technoking of Tesla and Master of Coin”
Effective as of March 15, 2021, the titles of Elon Musk and Zach Kirkhorn have changed to Technoking of Tesla and Master of Coin, respectively. Elon and Zach will also maintain their respective positions as Chief Executive Officer and Chief Financial Officer. Source: Inline XBRL Viewer
Tesla investor sues Elon Musk, claims tweets violate SEC settlement
Tesla chief executive Elon Musk and the board of the electric car company have been sued by a shareholder who accused Musk of violating his 2018 settlement with the Securities and Exchange Commission over his Twitter use. According to a complaint unsealed late Thursday in Delaware Chancery Court, Musk’s “erratic” tweets, including a post last May […]
Tesla buys $1.5 billion in bitcoin and plans to start accepting it as payment for products
Tesla announced Monday that it bought $1.5 billion worth of bitcoin, according to a filing with the SEC. The company said it bought the bitcoin for “more flexibility to further diversify and maximize returns on our cash,” according to the filing. In addition to the purchase, Tesla said it would start accepting payments in bitcoin […]
Musk’s tweets enter the SEC | FT Alphaville
FT Alphaville believes this is the first time an SEC filing has featured a screenshot of tweets as part of a key announcement to shareholders. Now, some may just chalk this up to as yet another demonstration of the on-going governance conundrum that is Tesla Motors, and its affiliated businesses. Sure, screenshotting a social media […]
Lucid Motors Snags General Counsel From Rival Tesla | Law.com
Electric car maker Lucid Motors Inc. has picked up a new general counsel from rival Tesla Inc.’s legal department, which still remains without a named top lawyer after losing three general counsel last year. Lucid announced this week that it hired former Tesla deputy general counsel Jonathan Butler to serve as the Newark, California-based company’s general […]
Judge shelves Tesla shareholder lawsuit to stop Elon Musk from tweeting – MarketWatch
A Delaware judge has denied a request by attorneys for Tesla shareholders to pursue a lawsuit seeking to prevent CEO Elon Musk from using his personal Twitter account to disseminate information regarding the electric vehicle and solar panel manufacturer. Vice Chancellor Joseph Slights III ruled Tuesday that shareholder attorneys had not demonstrated a sufficient reason […]
In Lieu of D&O Insurance, Musk Agrees to Provide Tesla with “Coverage” | The D&O Diary
On April 28, 2020, Tesla filed with the SEC an amendment to its annual 10-K filing (here). The amendment addresses a number of corporate governance and executive compensation issues. In a section of the filing with the heading “Director Independence,” the company discloses that: Tesla determined not to renew its directors and officers liability insurance […]
Musk’s “Take Private” Tweets Held Actionable | The D&O Diary
In a now infamous August 7, 2018 post on his Twitter account, Tesla CEO Elon Musk stated that he was “considering taking Tesla private at $420. Funding secured.” This post and several subsequent messages ultimately were the subject of an SEC enforcement proceeding (later settled) as well as several securities class action lawsuits (later consolidated). […]