From Investing.com: 2024-06-12 05:11:05

Investment bank Jefferies discussed scenarios for Elon Musk to increase his 12.9% stake in Tesla at the upcoming shareholder meeting, potentially up to 25%.

A legal case in Delaware challenges Musk’s 2018 pay package, with unresolved issues raising questions about Musk’s control, the compensation committee, shareholder information, and burden of proof.

An appeal to the Delaware Supreme Court, if filed, could prolong resolution to a year, impacting employee share-based compensation and Musk’s possible future stakes.

Fixing the package would require independent committee oversight and retroactive pay adjustments, possibly leading to a separate lawsuit for services rendered but also open to challenge.

A dual-share structure for Musk’s stake rebuild could face legal challenges from other shareholders, with relocation to Texas possibly aiding stake-building efforts due to favorable corporate laws in the state. Musk’s influence could be key in the annual meeting vote on the move.



Read more at Investing.com: Legal expert explains how Elon Musk can get a 25% stake in Tesla By Investing.com