Tesla launches website to convince shareholders to vote for Elon’s $55 billion payday
Tesla has launched a new website aimed at convincing shareholders to vote for reinstating Elon Musk’s $55 billion compensation plan.
Back in 2018, Tesla shareholders approved one of the biggest compensation plans of all-time: a $55 billion fully stock-based CEO compensation plan for Elon Musk.
In January, a judge sided with lawyers representing a Tesla shareholder alleging that Tesla’s board misrepresented the compensation package when presenting it to shareholders.
It’s a complicated issue, but in short, the judge found that Tesla’s board and Musk didn’t play by the rules of a public company when it presented the plan to shareholders.
The judge found that Tesla had governance issues when coming up with the compensation plan and those issues were not communicated to shareholders before voting on the plan.
Instead, Tesla claimed that the plan was negotiated by “independent board members” when it was found that some board directors had personal financial dealings with Musk outside of Tesla, amongst other things.
The Delaware court found that this invalidated the vote, and therefore, Tesla had to rescind the compensation plan.
Yesterday, Tesla told shareholders that it will ask them to vote on moving Tesla’s state of incorporation to Texas and then revote for Musk’s compensation plan without changing anything.
Now, Tesla has launched a new website called ‘SupportTeslaValue.com‘ to convince shareholders to vote for the package again.
The website opens up by claiming that giving the shares to Musk will “protect your investment and Tesla’s future”:
Most of the website is dedicated to the fact that the compensation plan was aligned with shareholders’ interests, super ambitious, and actually achieved the goals in the plan despite being super ambitious.
Virtually everyone can agree with all of that, but it’s not really what led the package to be rescinded.
The interests were aligned, but the judge did question the need for such a high compensation when Musk already owned more than 20% of Tesla at the time.
From the judge’s decision:
At a high level, the “6% for $600 billion” argument has a lot of appeal. But that appeal quickly fades when one remembers that Musk owned 21.9% of Tesla when the board approved his compensation plan. This ownership stake gave him every incentive to push Tesla to levels of transformative growth—Musk stood to gain over $10 billion for every $50 billion in market capitalization increase. Musk had no intention of leaving Tesla, and he made that clear at the outset of the process and throughout this litigation. Moreover, the compensation plan was not conditioned on Musk devoting any set amount of time to Tesla because the board never proposed such a term. Swept up by the rhetoric of “all upside,” or perhaps starry eyed by Musk’s superstar appeal, the board never asked the $55.8 billion question: Was the plan even necessary for Tesla to retain Musk and achieve its goals?
But the real issue is how the plan came about. The judge found that Musk was in control of Tesla and the board – leading to irregularities and how the plan was put together and negotiated.
That’s at the core of the judge decision and Tesla doesn’t really address it in its new SEC proxy statement and this new website.
This is the only section that sort of addresses it:
However, the testimonies from the Tesla board members, Musk, and everyone involved, led the judge to believe the work from the board wasn’t really “robust”.
For example, Todd Maron, a lawyer who represented Musk and formerly was his divorce lawyer, became Tesla’s general counsel when this plan was being negotiated:
The process leading to the approval of Musk’s compensation plan was deeply flawed. Musk had extensive ties with the persons tasked with negotiating on Tesla’s behalf. He had a 15-year relationship with the compensation committee chair, Ira Ehrenpreis. The other compensation committee member placed on the working group, Antonio Gracias, had business relationships with Musk dating back over 20 years, as well as the sort of personal relationship that had him vacationing with Musk’s family on a regular basis. The working group included management members who were beholden to Musk, such as General Counsel Todd Maron who was Musk’s former divorce attorney and whose admiration for Musk moved him to tears during his deposition. In fact, Maron was a primary gobetween Musk and the committee, and it is unclear on whose side Maron viewed himself. Yet many of the documents cited by the defendants as proof of a fair process were drafted by Maron.
That alone is a weird thing: having your divorce lawyer become your auto company’s general counsel.
The judge also argued that the board didn’t really negotiate the deal proposed by Musk. They made a few changes to align it with Tesla’s internal goals, but the judge believed the change couldn’t be described as “concessions” by Musk:
In this litigation, the defendants touted as concessions certain features of the compensation plan—a five-year holding period, an M&A adjustment, and a 12- tranche structure that required Tesla to increase market capitalization by $100 billion more than Musk had initially proposed to maximize compensation under the plan. But the holding period was adopted in part to increase the discount on the publicly disclosed grant price, the M&A adjustment was industry standard, and the 12-tranche structure was reached in an effort to translate Musk’s fully-diluted-share proposal to the board’s preferred total-outstanding-shares metric. It is not accurate to refer to these terms as concessions.
Tesla shareholders are going to vote on the plan again in June, along with the move to Texas and the re-election of two board members, including Musk’s brother, Kimbal Musk.
Electrek’s Take
Before voting, Tesla shareholders should look at more than the proxy and Tesla’s new website.
You should really read the judge’s decision, which includes excerpts from testimonies from basically everyone involved. It does undoubtedly paint the most accurate picture of how the plan came about – certainly more than the board saying they met 15 times to discuss this plan.
That’s all I’m asking. Read the judge’s decision.
Here’s the judge’s decision in full:
FTC: We use income earning auto affiliate links. More.
Royal Enfield’s eagerly anticipated electric motorcycles, unveiled late last year under the Flying Flea brand, are now confirmed to hit the market early next year. Eicher Motors Managing Director B. Govindarajan narrowed down the release window, confirming that the two models currently in testing, the FF-C6 and S6, will debut in the fourth quarter of the fiscal year 2026, corresponding to January through March 2026.
The announcement provides a clear timeline for eager e-motorcycling enthusiasts who have closely followed Royal Enfield’s pivot to electric mobility. Previously, the company had remained relatively tight-lipped about exact launch dates and even many of the upcoming bikes’ key specs, only hinting that the electric motorcycle project was progressing steadily.
The Flying Flea name is a historical nod, reviving memories of Royal Enfield’s lightweight motorcycle originally used during World War II for airborne operations. Just like its iconic namesake, the new Flying Flea electric motorcycles are expected to be compact, accessible, and user-friendly, aiming at urban commuters and younger riders seeking a blend of heritage styling with modern electric propulsion.
The FF-C6 and S6 represent two distinct offerings within Royal Enfield’s electric lineup, signaling an ambitious start for the company’s electrification strategy. While specific technical details remain scarce, previous hints suggest that the models will prioritize practicality, affordability, and moderate performance suited to daily commuting rather than high-end, performance-oriented segments.
However, with a dearth of solid specs regarding power, range, or pricing, it’s too soon to tell how warmly the bikes may be received during their upcoming launch.
This cautious yet clear step into electric mobility aligns with Royal Enfield’s traditional ethos of delivering approachable motorcycles that combine classic design with dependable performance.
The company, owned by Eicher Motors, has enjoyed success internationally over the last decade, particularly with models like the Classic 350, Meteor 350, and Himalayan, which have resonated strongly with both new and experienced riders. The Flying Flea line is likely destined for international markets as well, though may launch solely in India first as Royal Enfield works to ramp up production.
Royal Enfield’s venture into electric motorcycles also follows a strategic €50 million investment by Eicher Motors into Stark Future, a cutting-edge electric motorcycle startup based near Barcelona, which likely helped Royal Enfield’s technical team.
For example, at the Flying Flea brand’s worldwide unveiling at the Milan Motorcycle Show last year, one of the company’s driving prototypes was spotted using several Stark VARG powertrain components to complete a working model for demonstration.
With electric motorcycles rapidly gaining popularity worldwide due to their efficiency, lower maintenance costs, and environmental advantages, Royal Enfield’s entry into this market comes at an opportune time. The company’s robust global presence and dedicated fan base provide a solid foundation for launching these models successfully.
With the success of relatively smaller electric motorcycles compared to the struggles of larger sport bike e-motorcycle companies, the Flying Flea appears positioned for a more welcoming market.
Given Royal Enfield’s knack for delivering motorcycles with a blend of nostalgic aesthetics and modern functionality, expectations are high for the FF-C6 and S6 to carve out their own distinct niche in the electric two-wheeler market. For now though, fans are still eagerly awaiting more information and details regarding the performance and price of the upcoming electric two-wheelers.
FTC: We use income earning auto affiliate links. More.
![XPeng just teased its next-generation P7 sedan and it is SLEEK [Video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/05/XPeng-P7-Gen-2-top.jpg?resize=1200,628&quality=82&strip=all&ssl=1)
It’s been less than a month since XPeng Motors began teasing a new camouflage sedan codenamed the E29. This morning (or this evening if you’re in China), XPeng unveiled the mystery sedan as its next-generation P7. This vast redesign of the Chinese automaker’s flagship BEV sedan is a bona fide stunner, and makes me wish I could drive one of my own in the US.
The P7 debuted at the Shanghai Auto Show in 2019 as XPeng’s first sedan and its second production model behind the now-discontinued G3 SUV. It was also the first XPeng model I ever drove during a trip to the Netherlands in 2022.
In its first two years of production, which began in 2020, XPeng built over 100,000 units of its flagship sedan, and the sport vehicle has remained a pillar in its global sales. Since its launch in China, we’ve seen XPeng deliver a 2023 refresh called the P7i and the P7+, complete with pure camera vision ADAS, which launched last fall as “the world’s first AI car.”
According to an internal letter sent out by XPeng founder, chairman, and CEO He Xiaopeng last December, the Chinese automaker has big plans for 2025 and beyond. It aims to become a globally recognized brand with a presence in over 60 countries by the end of the year.
The internal letter also stated XPeng’s plans to launch a new or facelifted model nearly every quarter in 2025. In Q1, we saw the debut of the G7 SUV, starting at an ultra-competitive price of around $34,000 in China. Since then, XPeng has been teasing another new model, codenamed “E29,” spotted driving around Guangzhou, where XPeng is headquartered, in camouflage last month.
Today, XPeng confirmed the E29 is not a bespoke model, but instead a completely new generation of the P7, dreamt up by Chief Designer Rafik Ferrag, who led the creation of the original 2020 model. Have a look:
XPeng shares first images of its stunning new P7 design
XPeng shared the initial images seen above alongside a brief press release outlining its exciting new design language as explained by its designer, Rafik Ferrag, who began teasing the new model on his own social media accounts earlier this week:
I’m very excited that the first official pictures and video are now visible to everyone. The original P7 was a milestone for XPENG and a turning point in China’s EV landscape. With this new generation, we set out to design a pure electric sports sedan that could amaze at every angle. This car is our dream—refined through countless iterations. In my eyes, the all-new XPENG P7 is a work of art, shaped with emotion and purpose.
The Chinese automaker explained that the new 5-seat P7 coupe reflects Ferrag’s “evolving design philosophy” and has been in development for the past five years. XPeng founder He Xiaopeng called it a “major upgrade” for the brand’s next leap in BEV technology, blending AI with luxury and the company’s new Turing Smart Driving system.
What specific technology the next-generation P7 holds remains unknown to the public at this time, but we were told more details will be revealed later. For now, we have our first official peek at this new futuristic model and a teaser video, which you can view below.
If the new P7 represents XPeng’s design language going forward, there should be many more exciting reveals in 2025 and beyond as the brand continues to expand into a globally recognized name.
FTC: We use income earning auto affiliate links. More.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business3 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway