Elon Musk and other Tesla board members have agreed to return over $735 million in stock awards and cash as part of a settlement of a lawsuit over the board’s compensation.
In 2020, the Police and Fire Retirement System of Detroit, a Tesla shareholder, decided to sue Tesla over what it believed to be excessive board compensation that had been improperly awarded since 2017.
The defendants include Elon Musk, CEO and board member at Tesla, his brother Kimbal Musk, media mogul James Murdoch, billionaire Larry Ellison, and virtually every Tesla board member of the last six years.
They have received hundreds of millions of dollars worth of stock options over the years. To be fair, much of the value of those stock options has been due to the rise in the value of Tesla’s stock over those years.
In a new filing with the court last week, Tesla has agreed with the plaintiff on a massive settlement that would see board members return over $735 million worth of stock awards and cash.
As part of the settlement, Tesla directors don’t admit to any wrongdoing and settle “to eliminate the uncertainty, risk, burden, and expense of further litigation.”
The settlement is significant.
The directors agree to forfeit all compensation from 2021 to 2023. It means canceling existing stock options, returning stocks from options that were exercised, and even returning cash from stocks that were sold after the options were exercised.
It adds up to $458 million worth of stocks and $276 million in cash being returned to Tesla.
On top of the stocks and money being returned, Tesla’s board has also agreed to hire a new outside consultant to look into its board compensation.
The judge overseeing the case, Chancellor Kathaleen St. J. McCormick, needs to approve the settlement before it becomes official.
Interestingly, McCormick is also presiding over another compensation lawsuit related to Tesla, but this one is specifically about Elon Musk’s 2018 CEO compensation plan, which could be worth as much as $55 billion.
Musk refused to settle this lawsuit, and the judge is expected to rule on it soon.
Electrek’s Take
That’s quite a settlement. I’ve tried to find out exactly how much each director is going to give back, but I couldn’t find the details yet.
There are 12 defendants in total, as Tesla has cycled through a few board members over those years.
To be honest, I’m not sure who is in the right here. Yes, that’s a lot of money for what is basically a part-time job. However, the board members’ jobs are to look after the interest of shareholders, and the shareholders want to see the stock’s value increase.
It has increased quite a bit – over 1000% since 2017. You can argue whether or not they are doing a good job, but you can’t argue with the results.
Either way, if it is approved – and it sounds like it will be – the settlement should have a major impact on the quarter during which it is approved, as Tesla will receive a lot of shares and cash back.
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Young Electric Boat Racing League E1 continues to expand its lineup of race teams as it approaches its second UIM E1 World Championship Season in 2025. Several big names in sports and entertainment signed on for season 1, but this next Championship series includes a new name – LeBron James, who will lead Team AlUla.
As you may or may not know, the UIM E1 World Championship is a new electric racing boat series first announced in 2022. It kicked off its inaugural season in February 2024 with the Jeddah GP, held in Saudi Arabia.
Since its inception, E1 co-founders Rodi Basso and Alejandro Agag have put together an impressive roster of team owners and continue to grow the league to draw more attention to sustainable motorsport and deliver stiffer competition.
Before season 1 of the UIM E1 World Championship Series, several familiar names joined as team owners, including Formula 1 veteran Sergio Perez, superstar DJ Steve Aoki, musician Mark Anthony, and, most recently, Will Smith.
LeBron James to lead Team AlUla in E1’s second season
The E1 Series shared news of LeBron James joining as its latest team owner this morning, mere days before the nascent electric boat racing league kicks off its second season once again in Jeddah, Saudi Arabia. That venue is fitting, considering LeBron James will lead a new squad called Team AlUla.
“AlUla” comes from an ancient oasis city in Saudi Arabia by the same name that is home to Hegra, the Kingdom’s first UNESCO World Heritage site. James’ new team will be piloted by racers Rusty Wyatt and Catie Munnings. The sure-fire NBA hall of famer spoke about becoming the latest E1 racing team owner:
As a lifelong fan of sports and competition, the opportunity to own an E1 team that represents such a high level of innovation in sports is incredibly exciting, E1 is a new type of global competition that’s revolutionizing water racing and I’m proud to be at the forefront of its expansion in season two.
Per E1, James has support from Co-Team Principals John Marlow and Barny Whitwham, who have a combined 30 years of experience working in commercial and technical roles in FIA Formula 1 and World Rally Championship motorsport teams.
Keep an eye out for LeBron James and Team AlUla competing in the Racebird seen above during season two of the UIM E1 World Championship presented by PIF. Racing kicks off this Saturday, January 25, during the Jeddah GP. Here’s the 2025 E1 race calendar as it currently stands:
January 24-25: E1 Jeddah GP
February 21-22: Visit Qatar E1 Doha GP
TBA
July 18-19: E1 Monaco
August 22-23: E1 Lake Como GP
TBA
November 7-8: E1 Championship, Miami
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After years of waiting and many falsestarts, Formula E is finally going to debut its mid-race charging system, which will give cars a quick boost of energy charging at a rate much faster than current road cars can.
For years now, we’ve been hearing about FIA plans to introduce charging stops to electric racing.
In gas car racing, some series allow mid-race fueling and some don’t. The World Endurance Championship, which runs the 24 Hours of Le Mans, obviously needs to fill up several times during the race. But Formula 1, which hosts shorter races, eliminated mid-race fueling in 2010.
But the FIA already had one electric racing series, Formula E, which had debuted in 2014. At the time, each driver had two cars, and would swap mid-race to a fresh car with new batteries.
Battery-swapping had been considered, but it would be too complicated to set up at temporary race facilities in city downtown areas, as many Formula E tracks are.
Then, in 2018, Formula E debuted a new “Gen 2” car which had a big enough battery not to need a charge mid-race, and later a “Gen 3” car in 2022, which had much stronger regenerative braking, capable of 600kW of braking power. Gen 3 also has an “Attack Mode” feature that lets cars unlock additional power for a short period each race, adding to strategy and mixing up the race order.
The issues involved building the charging system in temporary facilities and ensuring safety of the system (and of pit stops in general, which is always a concern when cars are driving rapidly near people). But after winter testing prior to this season, Formula E now says the system is ready to go.
So, once again, Formula E is ready to announce that mid-race charging is definitely, totally, positively, 100% certain at the upcoming Jeddah E-Prix, on February 14-15 in Jeddah, Saudi Arabia.
Formula E thinks that proving this high-power charging technology could help road cars to charge more quickly, which could have myriad benefits for electric cars in general.
The series is calling the system “Pit Boost,” and it will consist of a 34-second pit stop that provides around 10% additional charge to the cars (about 4kWh). While 10% isn’t a lot, 34 seconds is also not a lot of time. For comparison, one of the fastest-charging cars out there, the Ioniq 5, can charge from 10-80% in 18 minutes, which means 10% charge takes 2.5 minutes – five times as long as Formula E cars will manage the feat.
The stop will be mandatory for all drivers to take at some point in the race, and will mean new strategy options for drivers. Taking the stop means getting more energy, which means that your car won’t have to do as much energy saving to get to the end of the race – but it also means giving up your position on track, which can be hard to get back if you do it late in the race.
However, we’ve never seen it happen before, so it will be interesting to see what kind of strategic options develop.
If you’re interested in seeing how it turns out, tune in to the Jeddah E-Prix on February 14-15 to see what happens. It’s a doubleheader race weekend, with night races both on Saturday and Sunday, February 14-15, at 5pm UTC, 9am PST, 12pm EST, and 8pm local time. You can check out how to watch the race in your area by going to Formula E’s “Ways to Watch” section. In the US, Roku should be the most reliable way to watch.
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JackRabbit, the maker of pint-sized electric microbikes, is back with a new product designed to quickly recharge their batteries from pure, uncut photons mainlined into an e-bike directly from the sun. In true independent charging form, the Solar Charging Kit from JackRabbit keeps riders rolling even when there’s not a convenient AC outlet in sight.
Unveiled this week, the Solar Charging Kit consists of a single folding solar panel and a tiny voltage converter that is configured to output 42.0V, which is the exact voltage required by JackRabbit’s little e-bike batteries. There’s also an added USB-A and a USB-C charging port for powering other devices in addition to charging JackRabbit batteries.
“This Solar Charging Kit plugs directly into your bike,” explained the company, “letting you recharge without needing an outlet, but with a speed comparable to the charger that comes with the OG/OG2 (42V, 2A).”
That would mean the panel outputs around 80W of solar power, which the company says can recharge its batteries in just three hours. That fairly quick recharging speed is helped by the fact that JackRabbit’s batteries are a mere 151 Wh, or around a third of the size of most e-bike batteries.
If that sounds small, then you’re right – it is. But JackRabbit is all about going micro, offering barely 25 lb rideables that are easy to store and bring on adventures, even when they aren’t actually being ridden.
With small batteries that fit under the 160Wh limit for many airlines in the US, the batteries can be quickly charged and taken to the widest number of locations. And for riders that want to go further than a single 10-mile (16-km) battery will allow, extra batteries are small enough to fit a pants pocket. The company also offers much larger Rangebuster batteries, though they won’t pass by TSA and make it onto an airplane in your personal item.
It sounds like the Solar Chargking Kit should be able to charge up JackRabbit’s large RangeBuster batteries, though likely in more than three hours.
The $349 Solar Charging Kit is a bit pricier than building something similar yourself, but it’s also safer and more convenient than hacking together your own battery charger since it’s designed to work with JackRabbit’s batteries right out of the box.
Technically it’s only inteded for JackRabbit’s micro e-bikes (themselves technically seated scooters, even if they look and feel more like a typical bike), but it’d probably work for just about any 36V e-bike that requires 42.0V to charge.
This isn’t the first time we’ve seen solar charging kits for electric bikes, and it’s a trend that is certainly appreciated by outdoors and camping enthusiasts, festival goers, or anyone who finds themself and their bike spending extended periods in the great, sunny outdoors.
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