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The judge ruling over Elon Musk’s ~$55 billion CEO pay package, which some Tesla shareholders claimed was obtained without following proper governance rules, has decided to reject Tesla’s attempt to reinstate it with a shareholder vote.

Delaware Supreme Court could be next.

In 2018, Tesla shareholders voted for Elon Musk to get a historic new CEO compensation package that could be worth $55 billion for the executive if Tesla achieved remarkable growth in valuation and profits, which it did.

However, some shareholders argued that Musk unfairly secured this extremely generous compensation plan by misleading shareholders about the fact that the plan was being put together by an independent board and negotiated in good faith.

They filed a complaint in court in Delaware. The case went to trial in 2022, but it took a long time for the judge to give her decision.

Earlier this year, Delaware Chancery Court Chief Judge Kathleen St. J. McCormick sided with the shareholders after testimonies from everyone involved in the pay package negotiations, or lack of negotiations, and a thorough investigation of how it came about.

She determined that Musk was in control of the board during the time it granted him the pay package while the board members who approved the package were also granted historically large compensations, which they ended up partly reimbursing as part of a settlement from a separate lawsuit for excessive compensation.

McCormick found many governance irregularities, including the fact that the board members who supposedly negotiated the package were not independent of Musk, and even his personal lead on the compensation was his own divorce lawyer, who he had recently hired to be general counsel at Tesla.

The judge rescinded the compensation package, which included over $50 billion worth of Tesla stock options that the CEO had yet to exercise. She asked Tesla to go back to the drawing board, renegotiate the pay package in good faith, and present it properly to shareholders.

Instead, Tesla disagreed with the judge’s findings around governance issues and decided to present the same package while including the judge’s decision in the updated proposal and having Tesla’s shareholders vote on it again.

In June, Tesla shareholders voted to reapprove the package, albeit at a lower percentage than the original vote.

Tesla’s legal team believed the vote would “ratify” the compensation package and force the judge to vacate her decision to void the pay package. However, both Tesla’s lawyers and most corporate law scholars agreed that this would require a completely new way to address ratification.

McCormick listened to both sides this August, and we were awaiting her decision by the end of the year.

Today, the judge released her decision and she sided against Tesla’s argument again:

“The large and talented group of defense firms got creative with the ratification argument, but their unprecedented theories go against multiple strains of settled law.”

Beyond the ratification problem, the judge also said that she believes Tesla again misrepresented the situation to shareholders in the statements made around the new vote:

“Even if a stockholder vote could have a ratifying effect, it could not do so here due to multiple, material misstatements in the proxy statement.”

On top of her ruling on the compensation, she also ruled against the lawyers for the shareholders, who were asking for a ridiculous $5 billion in Tesla stock as their legal fee. Instead, she awarded them $345 million.

Tesla is likely to contest the ruling, which could move the case to the Delaware Supreme Court.

Electrek’s Take

As I wrote last summer, Elon Musk’s compensation package case will haunt Tesla for years. Even if you believe Musk deserves this package, Tesla’s approach to reinstating it was boneheaded and didn’t follow the law as I, and seemingly the judge and most Delaware corporate law experts, understand it.

Tesla, and more specifically Elon Musk, it’s hard to differentiate the two lately, which is part of the problem, are showing no intention to address their governance issues.

Let’s be clear: Elon could get paid somewhat easily here. Even as much or close to this amount. However, it needs to do it through the proper governance and respect the process.

Instead, Elon prefers to lie to shareholders and present the situation as politically motivated lawfare. It’s nonsense.

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GM’s interesting electric motorcycle patent fuels two-wheeler speculation

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GM's interesting electric motorcycle patent fuels two-wheeler speculation

General Motors may be better known for its lineup of full-size trucks and SUVs, but a recently published patent shows the legacy automaker has at least considered something much smaller and nimbler: an electric motorcycle.

The patent, which surfaced earlier this year in a report by Visordown, outlines a lightweight, scrambler-style electric two-wheeler that has set off a fresh wave of speculation about GM’s potential interest in electric motorcycles or micromobility.

The design in the patent filing shows a slim electric motorcycle with a flat bench seat, upright handlebars, and dual-sport tires, suggesting a utility-forward ride meant for light off-road or potentially even mixed urban use (if it were homologated for street use).

The rear hub motor and what appears to be a central battery housing point to a simple, low-maintenance drivetrain, potentially aimed at the commuter or recreational rider market.

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The overall look is somewhere between a moped and a small electric dirt bike, reminiscent of models like the Sur Ron Light Bee or Talaria Sting, though slightly more street-looking with less of a focus on pure dirt.

While the patent doesn’t include performance specs or firm production plans, it’s the clearest signal yet that GM is at least experimenting with the idea of higher-powered two-wheeled EVs. And there is some precedent. GM previously dipped a toe into the micromobility waters with the Ariv electric bicycle project, and more recently partnered with Recon Power Bikes to release a Hummer-branded fat tire e-bike.

Both efforts showed that GM sees value in offering electric alternatives beyond the traditional four-wheel format, even if the Ariv program quietly ended after a short run.

gm ARĪV ebike
GM previously experimented with an in-house electric bicycle known as the ARĪV, though it was killed off soon after

Whether this patent leads to a full-fledged GM electric motorcycle remains to be seen. It’s entirely possible the design is a concept or technology demo with no intention of hitting the market. But there are other possibilities too. GM could develop a motorcycle under one of its existing sub-brands, create a new division specifically for electric powersports, or partner with an existing two-wheeler manufacturer to license or co-develop the platform.

The timing wouldn’t be far-fetched. Despite bumpy roads in the larger flagship electric motorcycle market, lightweight electric motorcycles are booming, with companies like Ryvid targeting urban riders looking for clean, compact alternatives to traditional gasoline-powered bikes.

At the same time, a growing number of younger consumers are bypassing car ownership entirely, instead looking toward e-bikes, scooters, and low-speed electric motorcycles for daily transport. A small, stylish, and affordable GM electric motorcycle could hit that sweet spot.

Of course, turning a patent drawing into a real-world vehicle is a big leap, and GM’s own e-bike history is a reminder that two-wheeled projects can be short-lived. Still, it’s hard to ignore the symbolism of this move: even one of America’s largest automakers is exploring what personal electric transportation looks like when you cut the vehicle in half. GM might not be ready to ditch its trucks, but it clearly hasn’t ruled out hopping on a bike.

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Current Classics: Rolls-Royce Phantom V gets even smoother and quieter

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Current Classics: Rolls-Royce Phantom V gets even smoother and quieter

The electric restomod experts at Lunaz have turned their talents towards the classic Rolls-Royce Phantom V limousine – and the result is exactly the kind of smooth, quiet, and luxurious ride RR’s founders would have built.

Rolls-Royce’ founders dedicated their engineering talents to developing cars that were smooth, quiet, and adequately powerful – and they spared no expense. The company Charles Rolls and Henry Royce founded would eventually go on to develop some of the most powerful and celebrated combustion engines of the twentieth century … but the car they wanted to build? It was electric.

“The electric car is perfectly noiseless and clean,” Charles Rolls told The Motor-Car Journal, all the way back in April of 1900. (!) “There is no smell or vibration, and they should become very useful when fixed charging stations can be arranged. But for now, I do not anticipate that they will be very serviceable – at least for many years to come.”

Well, 125 years seems like “many” to – and the talented craftspeople and engineers at Lunaz seem to agree. Meet the Lunaz Rolls-Royce Phantom V limousine.

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It’s glorious


Rolls-Royce Phantom V; via Lunaz.

Lunaz says it’s true to Rolls’ vision “down to the smallest, most indulgent detail.” To that end, the company re-trims the modern heated and ventilated seats in fine leathers, hand-cut and stitched to the buyers’ specifications. In the rear, the center console can be ordered with a built-in cigar humidor, a cocktail bar, or some other custom-spec, lockable storage lined in suede and polished walnut (translation: guns and drugs, probably).

When reimagining the Rolls-Royce Phantom V, (we) started by understanding the essence of its original design. Every component and dynamic was scrutinized to identify where thoughtful innovation could truly elevate the experience. The result is a harmonious blend of modern advancements and original mastery, unlocking new levels of performance, reliability and refinement while honoring Rolls-Royce’ classic soul.

LUNAZ

Like the classic Bentley S2 Continental the company revealed in 2023, the big electric Roller is equipped with an 80 kWh battery pack sending electrons to a proprietary Lunaz drivetrain featuring 400 hp worth of electric motors delivering a silky-smooth 530 lb-ft of torque, good for a 0-100 km/h (62 mph) swoosh in about seven seconds. Of course, why you’d ever ask your driver to perform such plebian stunts is simply beyond me.

The transformation and restoration took more than 5,500 man-hours to complete, and involve more than 11,000 new or reconditioned components at a cost of more than £1 million (about $1.35 million US). If you place your order today, you should get yours in 18-24 months.


SOURCE | IMAGES: Lunaz.


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Fortescue Infinity Train electric locomotive never needs fuel or charging

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Fortescue Infinity Train electric locomotive never needs fuel or charging

Fortescue has taken the wraps off a prototype of its proposed “Infinity Train” electric locomotive, making the 1,100 km (about 685 miles) trip from Perth to the Pilbara and marking a major milestone in the decarbonization of the company’s heavy haul operations.

Co-developed with the locomotive experts at Downer Group, Fortescue revealed its concept for a battery electric “Infinity Train” back in March of 2022. At the time, the company promised a “world’s first” iron ore train capable of fully charging its batteries through regenerative braking. The two companies claimed the clever technology would create a self-sustaining, zero-emission rail system powered entirely by the force of gravity during the train’s loaded downhill travels.

This week, the concept went from the drawing board to the real world, completing an 1,100 km trip across Australia and proving itself to be up to the task of handling the grueling demands of Fortescue’s massive mining operations.

“We’re thrilled to see our battery electric locomotive prototype arrive in the Pilbara,” said Ellie Coates, CEO of Fortescue Zero. She added that the achievement, using zero fossil fuels, “represent(s) a major step in Fortescue’s journey to Real Zero.”

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The Fortescue Infinity Train uses the energy produced by slowing the loaded train on downhill sections of the company’s 385 mile private, heavy-haul rail network to recharge its battery systems. That energy is enough to bring the unloaded train back to the mine, eliminating the need for external charging infrastructure or additional renewable energy sources, making the train almost entirely self-sufficient.

Fortescue says the deployment of the Infinity Train concept at its mines will eliminate more than 82 million liters of diesel fuel consumption (about 21 million gallons, which ChatGPT tells me amounts to about 235,200 tons of CO₂ emissions).

That change alone would eliminate about 11% of Scope 1 emissions annually for Fortescue all on its own, putting it well on its way to its stated goal of achieving “Real Zero” emissions-free operations.

Electrek’s Take


Infinity Train on the rails; via Fortescue.

Using gravity to charge up heavily-laden mining vehicles on downhill runs is an idea that’s been put into practice for years, with great success wherever the topography allows (since 2017, at least). Combining that clever use of gravity, traction braking, and battery storage for use on a rail system like this just seems smart, and it makes me think we’re just scratching the surface of all the clever ways electrification and battery storage will eventually get put to use.

I wonder what would happen if you threw some battery electric rail cars into the mix, as well!? You guys are smart, head down to the comments and let me know (and, while you’re there, help me check ChatGPT’s math on those carbon emissions).

SOURCE | IMAGES: Fortescue, via LinkedIn.


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