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Elon Musk Weekly News Update: Tesla, SpaceX, X, Neuralink, and More · Elon Musk Podcast

0:01
Hey everybody, welcome back to the Elon Musk Podcast.
0:05
This is a show where we discuss the critical crossroads, the
0:08
Shape, SpaceX, Tesla X, The Boring Company, and Neuralink.
0:13
I'm your host, Will. Walden, the legal team
0:16
representing Tesla shareholder Richard Tornetta, has adjusted
0:20
their demand for legal fees in the case against Elon Musk's
0:24
2018 CEO Performance Award. Initially, Tornetta's team
0:29
sought an award amounting to 29.4 million Tesla shares valued
0:34
over $5 billion. They have now proposed an hourly
0:38
rate adjustment to $73,948, leading to a total fee of
0:44
approximately $1.44 billion. Now, the Tornetta Verse Must
0:50
case gained prominence in January when Judge Kathleen
0:54
McCormick of the Delaware Court of Chancery an old Musk's 2018
0:58
CEO performance award. Tornetta's lawyers argue that
1:02
their substantial effort justifies their proposed
1:05
compensation. Initially, they requested a fee
1:07
based on 29.4 million Tesla shares, which would equate to
1:11
more than $200,000 per hour. And Tesla has contested the fee
1:16
request, proposing a much lower fee of $13.6 million for
1:21
Tornetta's league team. Now Tesla's position was
1:24
supported by Amy Stephens, a long time Tesla shareholder who
1:27
also secured legal counsel to oppose the $200,000 hourly fee
1:32
suggested by Tornetta's lawyers. In the revised filing,
1:35
Tornetta's legal team offered an alternative perspective on the
1:39
fee structure while rejecting Tesla's $13.6 million proposal.
1:43
They suggested a cash based alternative that would equate to
1:46
an hourly rate of $73,948, totaling around $1.44 billion.
1:53
This rate is a significant reduction from the initial
1:56
proposal, but still reflects their extensive work on the
1:58
case. Tornado's lawyers provided a
2:02
detailed argument supporting their fee request.
2:05
They cited historical precedents such as the Southern Peru case
2:08
where $35,000 an hour rate was awarded over a decade ago.
2:12
Adjusting for inflation, this rate would be over $55,000 per
2:17
hour today, which they argue justifies the revised rate of
2:20
$73,948 per hour now. The lawyers argued that even
2:25
Tesla's own estimates indicated a significant compensable value
2:30
estimated at 2.3 billion. Using these estimates, they
2:34
calculated that a low end cash award should be around 1.0842
2:40
billion. Based on the affirmed inflation
2:42
adjusted southern Peru numbers. They noted that this would still
2:46
be lower than what they. Believe is fair compensation.
2:49
Now, the attorneys pointed out that the southern Peru case
2:51
involved penalties that reduce the final award, and in this
2:53
case, the court penalized the plaintiff's counsel by reducing
2:58
their fee request by 1/3 due to delays.
3:00
And Tornetta's lawyers argued that without such penalties, the
3:03
justified rate would indeed be around $73,948 per hour.
3:09
Now, Tesla has responded by seeking to delay the July
3:12
hearing schedule to determine the legal fees, arguing that a
3:16
recent shareholder vote approved Musk's pay package it that
3:20
impacts the case, and Tesla's attorneys filed a request to
3:24
delay the hearing, citing the June 13th decision by
3:27
shareholders as significantly affecting the remaining issues.
3:31
Now, Greg Varalo, representing Tornetta, countered that Tesla's
3:37
attempt to re litigate the approval process for Musk's pay
3:40
package lacks legal basis. It should not delay the
3:43
proceedings. He asserted that the shareholder
3:45
vote has no legal effect after the court's judgement on the
3:48
merits now. Varello emphasized that the
3:51
court should move forward with the determining of the fee award
3:54
for Tornado's legal team, arguing that they deserve
3:56
billions of Tesla stock for the successful challenge.
4:00
Delaying the hearing would postpone the final judgement and
4:02
potential appeal process now. Judge McCormick previously
4:06
annulled Musk's pay package, finding undisclosed conflicts of
4:09
interest among Tesla's board members, and Mccormick's
4:12
upcoming ruling on the legal fees will finalize the case and
4:15
allow Musk to appeal to the Delaware.
4:17
Supreme Court. Now, Musk has reacted to the
4:20
court's decision by threatening to pull his company's legal
4:23
incorporations out of Delaware and calling for a new proxy vote
4:26
to move Tesla's corporate home to Texas.
4:29
Now, Texas people and Tesla shareholders voted
4:33
overwhelmingly in favor of this move.
4:36
So Tesla's moving to Texas and Musk's called Relocate Tesla's
4:40
corporate home and encourage other businesses to leave
4:43
Delaware reflects his dissatisfaction with the state's
4:45
legal decisions. Delaware's Chancery Court is
4:48
known for its expertise in corporate litigation, housing
4:51
more than 70% of Fortune 500 companies.
4:54
And despite the shareholder vote approving Musk's pay package,
4:58
Elon still faces legal challenges and overturning the
5:01
Delaware court's decision. The Court's ruling voided his
5:04
2018 pay package, which he must now appeal to secure.
5:09
The resolution of this case will have considerable financial
5:12
implications for both Musk and the legal teams involved.
5:16
The final determination of legal fees will set a precedent for
5:19
future corporate litigation and executive compensation cases.
5:23
The ongoing legal battle highlights the complexities of
5:26
executive compensation and corporate governance,
5:29
emphasizing the role of shareholder oversight in
5:32
corporate decision making. The outcome will be closely
5:34
watched by legal experts and corporate stakeholders.
5:37
And if you have any stock in Tesla, be sure to watch this.
5:42
See how this turns out. Because if Elon and company move
5:45
everything to Texas, it could change everything.
5:49
And remember, Elon threatened to pull away.
5:52
From. Tesla, if he didn't get his pay
5:55
package, he said he'd take his ball and go someplace else and
5:58
go play other places and he might not be able to do XAI or
6:03
other things because of this pay and the AI for Tesla.
6:09
Well. Some of it uses technology from
6:12
XAI. So Elon was gonna take that
6:15
away. I I don't know, it does it seem
6:17
like a bratty move? If you, you know, what do you,
6:20
what do you think? It seems like a a move that
6:23
almost a threat to shareholders that didn't approve of them
6:28
moving to Texas. He just said, hey, I'm going to
6:32
take all this money or I'm going to take everything else.
6:36
So that's up to you to decide, whatever you think.
6:39
And I think he's he should get the money because he did manage
6:43
to get through all of the bullet points that he had to do.
6:48
He had to achieve certain things, certain milestones and
6:50
he achieved them all with flying colors.
6:52
So I think he should be getting the award for that money.
6:57
How? As the case progresses, the
6:58
Delaware court's decisions will influence not only Tesla's
7:01
corporate structure but also the broader landscape of executive
7:04
compensation disputes. The legal principles established
7:08
in this case will guide future shareholder actions and
7:10
corporate governance practices. But ultimately, the court's
7:14
final judgment will determine the appropriate compensation for
7:17
Tornado's legal team and the validity of Musk's 2018 pay
7:20
package. The decision will shape the
7:23
future of executive compensation litigation for Tesla and Elon
7:28
Musk. Tesla and opponents of Elon
7:31
Musk's $56 billion compensation package clashed on Friday over
7:36
how to resolve the ongoing legal battle surrounding the pay deal
7:41
and the substantial legal fees contingent on its outcome.
7:44
Tesla contends that a recent shareholder vote to reinstate
7:48
Musk's compensation plan should overturn a prior court decision
7:53
that nullified the package. The company has filed documents
7:57
urging the Delaware judge to consider this vote and reverse
8:01
her previous ruling. The dispute began when Tesla
8:04
shareholders voted on June 13th to reinstate Musk's pay package,
8:09
initially approved in 2018. However, this decision is
8:12
pending while the lawsuit remains unresolved.
8:16
The shareholder vote occurred after Delaware Chancery Court
8:19
Chancellor Kathleen McCormick voided the pay package in
8:23
January, finding that the board's process was influenced
8:26
by Musk's personal relationships with board members and
8:29
inadequate disclosure of information about the deal.
8:34
Richard Tornetta, the shareholder who sued to
8:36
invalidate Musk's pay package, argues that the recent
8:40
shareholder vote should not impact the court's earlier
8:42
decision. Tornetta's legal team insists
8:46
that Tesla must appeal to the Delaware Supreme Court to
8:48
reverse the January ruling. Additionally, they argue that
8:52
before any appeal, Chancellor McCormick must determine the
8:55
legal fees Tesla owes for winning the case.
8:59
Tornetta's attorneys previously demanded 29 million shares of
9:03
Tesla stock, valued at over $5 billion, as their legal fee.
9:08
On Friday, they suggested Tesla could alternatively pay $1.1
9:13
billion, a figure based on precedent in the Delaware Court
9:17
of Chancery, though they described this amount as
9:20
unfairly low. Tesla, on the other hand, urged
9:23
the judge to address the implications of the shareholder
9:26
vote first, which could potentially reduce the legal
9:30
fees. Tesla maintains that the pay
9:33
package was re approved by shareholders and reviewed by an
9:37
independent board member, addressing the judge's concerns
9:40
about Musk's undue influence over the board.
9:44
The company plans to file a motion to reverse the January
9:49
ruling, arguing that the shareholder vote resolves the
9:53
issues raised by the court. Tornetta's legal team disputes
9:58
Tesla's position, asserting that the process for proposing the
10:01
ratification vote was flawed. They claim the shareholder vote
10:05
was influenced by Musk's threats to shift his focus to artificial
10:09
intelligence investments if he'd not gain more control over
10:11
Tesla. This coercion, they argue,
10:14
invalidates the vote's legitimacy.
10:16
Musk's pay package, structured with performance based targets
10:20
leading to stock option awards, was valued at $56 billion when
10:25
the last milestone was achieved. According to Tesla, the
10:28
compensation plan requires Musk to hold the stock options for
10:31
five years before exercising them.
10:34
This intricate structure is now under legal scrutiny as Tesla
10:37
seeks to uphold the agreement. The legal battle put significant
10:42
financial stakes for Tesla. If the courts rule in favor of
10:45
Tesla, the company can maintain Musk's pay plan and a $2.5
10:50
billion accounting charge recorded in 2018.
10:54
Conversely, a negative ruling could force Tesla to hold
10:57
another shareholder vote on the compensation plan and
11:00
potentially book a charge of at least $25 billion, threatening
11:04
future earnings. Kevin Murphy, an executive
11:08
compensation expert and finance professor at the University of
11:11
Southern California, testified for Tesla during the trial.
11:15
He emphasized the unprecedented nature of this dispute,
11:19
indicating that it's resolution could set new legal precedents.
11:22
The outcome hinges on complex legal interpretations and the
11:26
judge's decision making process. The spotlight now returns to
11:30
Delaware Judge Kathleen McCormick, who ruled that
11:33
Tesla's board did not act in the best interests of shareholders
11:36
when approving Musk's pay package.
11:39
Corporate law professor Anne Lipton from Tulane School of Law
11:43
noted that McCormick must decide whether the new shareholder vote
11:48
reinstates Musk's pay plan. This could involve considering
11:52
written and oral arguments or requesting additional
11:55
information and discovery. Tesla has requested an expedited
11:59
schedule for submitting court documents to present further
12:02
rationale for their positions. The company aims for a final
12:06
judgement from McCormick before taking further legal steps.
12:11
Tesla's legal team describes the recent shareholder vote as one
12:17
of the most well informed in recent history.
12:20
Citing support from major investors like BlackRock and
12:23
Vanguard, Tesla reported that 72% of votes cast by
12:28
shareholders, excluding Musk and his brother Kimball, favored the
12:31
compensation package. The upcoming hearing before
12:34
McCormick on July 8th will address unresolved matters,
12:38
including the request for $6 billion in legal fees by
12:42
Tornetta's lawyers, which Tesla disputes.
12:46
Should McCormick validate Musk's compensation, she might also
12:49
determine whether the shareholder vote retroactively
12:52
reinstates the agreement. As of 2018, Tesla claims this
12:57
could save the company at least $25 billion, making the court's
13:01
decision Making the court's decision even more crucial for
13:05
the company's financial outlook. Kevin Murphy suggests that if
13:08
McCormick acknowledges the shareholder vote, she might
13:11
decide not to interfere further in the contract between
13:15
consenting parties. However, Murphy doubts this
13:18
outcome, predicting that an appeal will follow with
13:20
McCormick rules against Tesla And Lipton also anticipates that
13:24
the losing side will appeal to the Delaware Supreme Court,
13:27
indicating that Mccormick's decision may not be the final
13:30
word on the matter. The case's resolution will
13:33
likely involve multiple legal maneuvers and further judicial
13:38
scrutiny. The broader implications of this
13:41
case extend beyond Tesla potentially influencing
13:45
corporate governance and executive compensation
13:48
practices. Legal experts are closely
13:51
monitoring the proceedings given their potential to set new
13:55
precedents in shareholder rights and board responsibilities.
14:01
As the legal battle continues, Tesla's ability to sustain
14:04
Musk's compensation package and navigate the associated
14:08
financial challenges remains uncertain.
14:11
The company's strategy and legal arguments will be critical in
14:15
shaping the final outcome and its impact on Tesla's future.
14:22
The upcoming court hearing and subsequent legal proceedings
14:25
will determine the fate of Musk's $56 billion pay package
14:29
and the financial consequences for Tesla.
14:32
The case underscores the complexities of executive
14:35
compensation and corporate governance in today's business
14:38
landscape. Tesla CEO Elon Musk has
14:41
confirmed that the company plans to spend between 3 billion and
14:45
four billion on NVIDIA AI chips this year.
14:48
This revelation came on Tuesday when Musk addressed the
14:51
reallocation of NVIDIA H 100 Graphics Processing units, GPUs
14:57
originally intended for Tesla, to his other ventures, X and
15:02
XAI. According to CNBC, Musk diverted
15:05
approximately 12,000 NVIDIA H100 GPUs from Tesla to these other
15:12
companies. This shift was confirmed by Musk
15:14
in a post on X, where he stated that Tesla had no immediate use
15:19
for the chips which would have otherwise remained in storage.
15:22
The GP US are integral to Tesla's ambitions in developing
15:26
its self driving technology. Tesla is constructing a
15:30
substantial supercomputing infrastructure to support this,
15:34
with the Giga, Texas facility nearing completion and slated to
15:37
house 50,000 H 100 GP US dedicated to full self driving
15:43
FSD training. Musk's actions have sparked
15:47
discussions among shareholders and analysts about the potential
15:50
delays this could cause for Tesla's supercomputing projects.
15:54
This reallocation might lead to months long delays in setting up
15:58
the necessary infrastructure, a critical component for advancing
16:02
Tesla's AI capabilities. The delays could add fuel to
16:07
ongoing criticism from Tesla shareholders, who are concerned
16:10
about Musk's attention being divided across multiple
16:14
companies. These concerns come at a time
16:17
when shareholders are voting on Musk's $56 billion compensation
16:22
package at the upcoming annual meeting.
16:25
The financial markets reacted to the news, with Tesla's shares
16:28
dipping nearly 1% on Tuesday, reflecting broader investor
16:32
concerns. Meanwhile, Nvidia's stocks saw a
16:36
1.3% increase, continuing its upward trajectory with 135% gain
16:41
year to date in 2024, driven by high demand for its GPUs.
16:46
Despite the reallocations, Musk remains optimistic about Tesla's
16:50
chip procurement, estimating significant investments in
16:53
NVIDIA hardware. He has stated that Tesla's AI
16:57
related expenditures for the year will total around $10
17:01
billion, with about half dedicated to the company's
17:04
internally designed AI systems and the Dojo supercomputer.
17:10
The Giga, Texas facilities development is a focal point for
17:13
Tesla's future. Musk highlighted that the
17:15
supercomputing center will initially require around 130
17:19
megawatts of power and cooling, with plans to expand to over 500
17:25
megawatts within 18 months. The facility's infrastructure
17:29
includes massive cooling systems, underground water
17:32
lines, and four large water tanks.
17:35
Musk confirm these developments in a recent post on X,
17:39
describing the center as a super dense, water cooled
17:42
supercomputer cluster. The facility is expected to play
17:45
a crucial role in enhancing Tesla's self driving technology
17:49
and AI capabilities. The diversion of GP US to X has
17:54
potential implications for Tesla's timeline in achieving
17:57
its AI goals. Musk's statement on X explained
18:01
that Tesla's Austin factory is not yet ready to utilize the
18:04
NVIDIA chips, justifying the temporary reallocation to
18:10
prevent the chips from sitting idle.
18:12
This decision may raise questions among Tesla investors
18:15
about Musk's focus and priorities, especially given the
18:19
company's ambitious targets for autonomous driving technology.
18:22
Tesla is set to unveil its first robot taxi vehicle in August.
18:26
Tesla's self driving technology, particularly its Autopilot and
18:31
Full Self Driving features, has faced scrutiny following
18:34
multiple crashes and fatalities. These incidents have put
18:38
additional pressure on the company to demonstrate progress
18:42
and reliability in its autonomous systems.
18:46
Meanwhile, Musk's AI startup XAI is positioning itself as a
18:51
competitor to giants like Open AI and Google.
18:54
Last month, XAI announced a $6 billion funding round aimed at
18:58
advancing its AI capabilities and developing new applications
19:02
for generative AI. NVIDIA, a critical supplier in
19:07
the AI industry, has seen substantial growth driven by the
19:11
demand for its GPUs. CEO Jensen Huang highlighted
19:15
during a recent earnings call that the company's products are
19:18
in high demand, contributing to a 200% increase in revenue last
19:23
quarter. Nvidia's success is tied to its
19:26
ability to supply essential hardware for AI advancements
19:29
across various industries. The company has become the third
19:33
most valuable in the world, reflecting its pivotal role in
19:36
powering AI research and applications.
19:40
Musk's confirmation of Tesla's substantial investment in NVIDIA
19:43
chips underscores the ongoing collaboration between the two
19:47
companies. This partnership is expected to
19:49
bolster Tesla's efforts in AI and autonomous driving.
19:52
Despite the temporary reallocation of resources, the
19:57
developments at Tesla's Giga Texas facility and the
20:00
integration of NVIDIA hardware are crucial for the company's
20:03
future AI endeavors. Elon Musk's strategic decisions
20:07
regarding NVIDIA chips are indicative of his broader vision
20:10
for AI across his various enterprises.
20:14
While the immediate reallocation may pose challenges for Tesla,
20:17
the long term prospects for AI advancements remain strong,
20:21
driven by significant investments and ongoing
20:24
developments in supercomputing capabilities.
20:28
Blue Origin has called upon the Federal Aviation Administration
20:32
to impose restrictions on the number of Spacex's Starship
20:35
launches from Kennedy Space Center.
20:38
This recent move is part of the ongoing rivalry between Jeff
20:42
Bezos and Elon Musk. Blue Origins complaint aims to
20:46
limit Spacex's Starship operations at Launch Complex 39
20:50
A currently the site for Falcon 9 and Falcon Heavy rockets.
20:54
SpaceX plans to use this complex for its Starship launches,
20:58
proposing up to 44 launches annually.
21:01
The FAA in May released Spacex's proposal for these high
21:05
frequency Starship operations at Kennedy, including the necessary
21:09
infrastructure to support such a launch schedule.
21:13
The public comment from Blue Origin is the latest chapter in
21:16
a long standing feud between Bezos and Musk.
21:22
The two have frequently engaged in public and legal disputes
21:24
over Space Flight supremacy, with both aiming to pioneer
21:27
space tourism. Musk, known for his sharp
21:30
retorts, responded to Blue Origins filing on social media
21:34
platform X, which he owns, with the comment Sioux Origin.
21:39
He further accused Blue Origin of using legal maneuvers to slow
21:42
down Spacex's progress. Although Blue Origins comment
21:46
holds no legal power, it will be considered by the FAA as they
21:50
decide on the restrictions for Starship's operations at
21:54
Kennedy. SpaceX is in the process of
21:57
obtaining a Commercial Launch Vehicle Operator license for
22:00
Starship at Launch Complex 39 A. This process includes preparing
22:05
an Environmental Impact Statement EIS under FAA
22:09
supervision to assess potential environmental impacts.
22:12
The maiden voyage of Starship ended in an explosion, causing
22:16
significant damage and prompting an FAA investigation.
22:20
The blast from the launchpad in Boca Chica, Texas, damaged
22:24
property up to six miles away, leading to legal action from
22:27
environmental groups against the FAA.
22:30
SpaceX has since improved the launchpad at Boca Chica to
22:33
better contain debris and mitigate environmental impact.
22:37
Despite these improvements, Blue Origin is leveraging the
22:40
incident in its plea to the FAA. Blue Origins public comment
22:44
cites the environmental scrutiny Starship operations have faced,
22:48
including the lawsuit against the FAA, as a reason for the FAA
22:52
to limit Starship launches at Kennedy.
22:55
Blue Origin also has operations at Kennedy Leasing Space Launch
22:59
Complex 36 and other facilities at Cape Canaveral Space Force
23:04
Station. The company employs over 2700
23:09
people in Florida with significant investments in
23:13
infrastructure at the site. The filing expresses concern
23:17
about the safety of Blue Origins property and personnel in case
23:21
of a Starship launch anomaly, such as explosions or debris.
23:26
It also mentions potential interference with shared
23:29
infrastructure and limited resources.
23:31
Blue Origin pointed out the massive fuel capacity of
23:34
Starship Super Heavy Booster, highlighting the potential for
23:37
significant environmental impact and safety hazards that could
23:41
affect other operations at Kennedy.
23:43
The company urged the FAA to cap the number of Starship launches,
23:48
limit launch times, and invest in infrastructure to make
23:51
Kennedy safer for other launch providers.
23:54
Blue Origin also called for compensation for commercial
23:57
activities impacted by Starship and penalties for SpaceX if it
24:02
violates its EIS or license. Blue Origin is developing its
24:07
own heavy lift rocket, New Glen, which has faced delays and has
24:11
not yet flown. The rocket has secured several
24:14
contracts, including one with NASA for a Mars mission, but the
24:18
rivalry with SpaceX remains fierce.
24:22
The rivalry has been especially public, with legal battles and
24:26
public taunts. After losing a court case
24:29
against NASA in 2021 over the Artemis Human Landing System
24:33
contract, Blue Origin later secured a separate contract as a
24:37
second provider in the military sector.
24:40
Blue Origin recently won a significant contract with the US
24:44
Space Force for 30 launches worth up to $5.6 billion,
24:50
following previous losses to SpaceX and United Launch
24:54
Alliance. Musk's public responses continue
24:57
to reflect his contentious relationship with Bezos with
25:01
accusations of legal obstruction rather than direct competition.
25:05
Blue Origins latest filing underscores the intense
25:08
competition and ongoing disputes between the two space companies.
25:13
The FA as decision on the requested restrictions for
25:16
Spacex's Starship launches will be an important move for the
25:20
company as it will need hundreds of launches from Kennedy Space
25:24
Center for the lead up to launch astronauts to the moon for the
25:28
Artemis missions. Can we for one second?
25:34
Think about SpaceX launching hundreds of Starships every
25:39
single year, both from Boca Chica, Starbase Texas, and
25:43
Kennedy Space Center in Florida. Now there are two companies that
25:49
made it very apparent that they don't want this to happen.
25:54
They did this the other day. And this is a thing that we have
25:59
to talk about as a community and as people that want to see
26:04
humans go to space, live on the moon, live on Mars.
26:09
And these two companies want SpaceX to be halted from sending
26:14
anybody to the moon for the Artemis program or in the future
26:20
to live on Mars. They made this very apparent in
26:25
some posts the other day. And Christian Davenport on X
26:31
posted this and A finally with the FAA regarding Spacex's
26:36
proposed use of Pad 39 A for Starship.
26:40
Blue. Origin, Jeff Bezos's company,
26:44
asked for a cap on the rate of Starship Super Heavy launch,
26:47
landing and other operations, including but not limited to
26:50
test firings, transport operations and fueling.
26:55
Blue Origin also says there should be mandatory penalties
27:00
for SpaceX for conducting operations not included in an
27:05
EIS or other environmental restrictions, violating a launch
27:09
license or any other laws, regulations, or other rules for
27:15
operating. OK, let's take a look at this.
27:20
So this reads, super heavy operations are expected to have
27:24
a greater environmental impact. Remember that part, The
27:26
environmental impact part is extremely important here than
27:30
any other launch vehicle currently operating at KSC Super
27:35
Heavy can hold up to an unprecedented 5200 metric tons
27:39
of liquid methane for propulsion, resulting in
27:42
qualified distances for safety margins that potentially overlap
27:46
the operational sites of other companies, the government and
27:50
the public. Now Blue Origin is talking about
27:52
their own facilities at Kennedy Space Center here.
27:56
Also the government, they pull them into this too, and the
27:59
public which does regular people doing regular jobs, which is
28:03
just people landscaping or doing whatever, you know, whatever
28:07
they do. Now the scary part is they
28:10
included environmental impact with this and this is where it
28:15
gets a. Little.
28:16
Bit dirty now. The data qualified quantifying
28:20
these qualified operations operation distances has not been
28:24
published, but given the anticipated super heavy launch
28:27
rate and vehicle impact, the impact of super heavy operations
28:31
at Kennedy Space Center maybe even greater than at Starbase.
28:35
Now let's go on a little bit further.
28:37
According the EIS should thoroughly evaluate the
28:40
considerable risks, alternatives, mitigations and
28:44
resources listed below. The issues raised herein are
28:47
reasonably foreseeable. OK.
28:51
Capping the rate of Super Heavy launches, landings, and
28:55
operations. Capping basically cutting off
28:59
SpaceX at the kneecaps so they can't do any launches or very
29:03
few launches from Kennedy Space Center.
29:06
Also no test firings. Transport operations, fueling to
29:10
a number that has a minimal impact on local environment.
29:14
Locally operating personnel and the local community.
29:18
They're just talking about the locals in consideration of all
29:22
risks and impacts, including but not limited to anomaly risk, air
29:26
toxin and hazardous materials dispersion, Rd. closures, and
29:29
heat and noise generation. They're basically calling out
29:32
SpaceX here. It's making them seem like
29:35
monsters. Government investment in
29:37
additional launch infrastructure that would make more launch pads
29:40
available to other entities in a manner that de conflicts the
29:43
Super heavy operations. From other launch providers
29:45
basically saying, hey, give us the.
29:48
Opportunity to continue doing our own launches while SpaceX is
29:51
doing their Starship stuff. It's a pretty big document and
29:57
it seems pretty sketchy in my opinion and I'm going to get
30:00
into. That a little bit later.
30:01
Why it's sketchy? What they want to do is put a
30:04
public perception of SpaceX into the zeitgeist.
30:08
The SpaceX is bad and Blue Origin is good.
30:11
Jeff Bezos, Oh, he's such a good guy.
30:14
Elon's unhinged. He's crazy.
30:17
Look at this guy. He does all sorts of wacky
30:18
stuff. He's a Wildman.
30:20
Jeff Bezos secretly undercover builds this massive rocket
30:24
that's in direct competition with SpaceX.
30:26
Direct competition was super heavy.
30:28
So by softening the blow with a greater environmental impact
30:33
statement on the 1st sentence, they make people think.
30:37
They make the government think, oh, this is going to be bad.
30:40
It's bad for the environment. Nobody wants to mess up the
30:43
environment. I don't I, I mean, you don't
30:46
want the water to get polluted. You don't want all of that
30:49
wildlife to die. Oh my God, what could happen if
30:54
SpaceX, if something happens, if SpaceX is super heavy rocket at
30:57
Kennedy Space Center, That's what they that's what they say.
31:00
This is a direct attack against SpaceX.
31:03
Now, mind you, the second sentence, unprecedented 5200
31:07
metric tons of liquid methane for propulsion resulting in
31:11
qualified distances for safety margins.
31:13
I understand this part that potentially overlap the
31:16
operational sites of other companies, the government and
31:19
the public. OK, so this part is true.
31:24
When Starship launches, the safety precautions that will be
31:28
needed for people, planes, boats, other companies, it's a
31:35
big kind of blast radius for this thing.
31:39
They have to be 7 miles away. And some of these companies,
31:42
including Blue Origin, aren't in that.
31:45
They are inside that blast radius.
31:47
They're not in the safe zone. So Blue Origin during these
31:52
launches, if there's going to be hundreds of launches per year,
31:56
that could be 100 days that SpaceX takes over Kennedy Space
32:02
Center. So this part of it totally
32:05
understand Bezos totally get it. Dude you look like a super
32:09
villain. OK, you have your giant yacht.
32:12
You. Have all the money in the world
32:15
and you also don't want this to stop your giant rocket from
32:21
launching and for your from your company from making money which
32:26
totally get it. Bezos is a savage businessman
32:31
and he will go after anybody that impedes his companies in
32:34
any single way. So SpaceX here, if Blue Origin
32:39
is in the blast radius of Starship super heavy, the keep
32:44
out zone from launches and of test flights, SpaceX, Elon
32:48
actually said they're not going to do test flights from Kennedy
32:51
Space Center, but they have to, right?
32:55
They have to get the the Starship ready to go at Boca
32:59
Chica, Starbase, Texas. But the first flight that they
33:02
do from Kennedy Space Center, it's not not a test.
33:07
They're going to be testing all the systems the first time.
33:10
Sure, it might be a successful launch and landing of the Super
33:12
heavy Starship, but it also could be, you know, a, a test of
33:19
sorts because they've never flown from that position before
33:24
from that spot. So from the Kennedy Space Center
33:28
launch tower that isn't even built yet, it's kind of a test.
33:33
So Bezos and company over here at Blue Origin, they kind of
33:36
have a point. I mean, that part of it, yeah.
33:40
But the whole environmental impact thing, that's.
33:42
Just a cover up. For what they really want, and
33:46
that's for SpaceX to get sued, they want legal precautions put
33:54
in place, mitigations if you will, for SpaceX.
33:57
So they can't launch from Kennedy's Space Center.
34:00
They want to hold them within red tape, strangle them for
34:05
years to come for within a environmental assessment,
34:11
environmental impact studies possibly could take years to
34:15
complete. Environmental impact studies,
34:19
you know they say here. Accordingly, the EIS
34:22
Environmental Impact Study should thoroughly evaluate the
34:25
considerable risks, alternatives, mitigations, and
34:29
resources listed below. Issues raised herein are
34:32
reasonably foreseeable. Now, here we go.
34:36
This is the part that gets a little bit wonky.
34:43
They're way ahead of everybody else.
34:45
So why would SpaceX not want to keep going forward here?
34:52
Elon and company, they're gonna keep working no matter what.
34:55
They're going to keep doing whatever they whatever they do
34:57
at Boca Chica, they're gonna make that second tower.
35:00
They're in the process right now on everyday Astronauts channel,
35:03
he interviewed Elon and Elon said they're building a brand
35:07
new tower. Everything's brand new.
35:10
The tower that we see now, it's going to be garbage compared to
35:13
this new tower apparently. And they're going to upgrade
35:16
everything, a new water system, new flame trench type system, he
35:21
said. Elon said the engineers are
35:23
going ham on this thing and building a a better tower.
35:28
So bigger tower, better tower. And in here they say the
35:33
government investment in additional launch infrastructure
35:36
that would make more launch pads available to other entities.
35:39
So basically, hey, we won't have the ability to launch when
35:43
SpaceX has Super Heavy ready to launch.
35:46
We won't be able to do any of our operations.
35:49
We need. We need the room, we need the
35:50
space, we need the time. So build us another pad, get us
35:55
all the other stuff that we need, the the roads, whatever we
35:59
need. We need like some other ways to
36:00
do our job. Totally get it.
36:04
And is Elon and SpaceX pushing the boundaries of Space Flight?
36:08
Yes. But is he pushing back on people
36:11
that are slow? Yes.
36:14
You know, if if Blue Origin can't keep up with them, then
36:19
what is what is Blue Origin supposed to do?
36:21
They're going to sue them. They're going to sue you.
36:23
Sue the hell out of them. And the FAA is gonna go along
36:27
with it. You know the FAA isn't gonna go
36:28
along with it, but the FAA. This is a letter to the FAA, by
36:30
the way. This isn't just something they
36:32
put out there. So here's another second
36:35
company. So not only was it bad that Blue
36:39
Origin was doing this, but also the ula has entered the chat.
36:45
What is up? Tori, Tori Bruno, You have a
36:49
cool cowboy hat. You have a cool mustache.
36:51
When you grow it out, you ride a horse, you have a giant rocket
36:55
company that's worth billions of dollars, but yet you joined up
37:00
with Blue Origin to also attack SpaceX, and it seems kind of
37:06
sketchy. I'm not going to lie here.
37:09
I want everybody to get along. I want all these rocket
37:11
companies to work together so people can work and live on the
37:15
moon and go to Mars. Why would you want to stop that?
37:20
The reason is it's Monday. Moolah Big green.
37:24
Now this is what Ula had to say. As a threshold matter, the EIS
37:29
must acknowledge that Starship is still in experimental stages.
37:32
SpaceX plant operations at LC39A Kennedy Space Center have
37:36
evolved and continue to evolve. We know it's a test vehicle
37:40
right now the FAA knows Starship is the largest rocket ever built
37:46
and is currently tested at Spacex's private base in Boca
37:49
Chica, Texas and in prior test results test flights SpaceX Now
37:53
this is the scary part people has experim experienced several
37:57
technical accidents. In addition, SpaceX has
38:00
acknowledged that the vehicle is not meeting anticipated
38:03
performance levels, and as a result, SpaceX has indicated
38:07
that it plans to increase the size and thrust level of the
38:11
vehicle stages to address this performance shortfall.
38:15
This would result in environmental and safety issues
38:18
greater than those witnessed at Boca Chica.
38:22
Let's scare the pants off everybody.
38:24
Let's just scare them, OK? They have a big rocket.
38:30
We know that it's gonna have more thrust than anything.
38:33
Everybody knows that the FEA works completely hand in hand
38:37
with SpaceX. So it's not like the FEA doesn't
38:40
know this stuff. And I can't believe they did
38:42
this on the same day as Blue Origin, within the within 24
38:47
hours of each other. Come on, Tori.
38:50
You know what, Tori? I'm not mad about this.
38:55
I'm just disappointed in you. You could have taken the High
39:00
Road. You could have done the right
39:02
thing. You could have competed with
39:05
SpaceX directly. You could have spent money
39:09
building reliable reusable rockets that could be launched
39:14
from an American launch provider with such a heritage and
39:18
prestige. Like ula you could have just
39:21
fought them hand to hand combat. But instead you're using sneaky
39:27
tactics. You're being a little sketchy
39:30
here. You're talking at the side of
39:33
your mouth. You should be talking
39:34
straightforward instead of saying this environmental stuff,
39:39
these rockets, they're going to hurt things.
39:42
Yeah, it's in a it's, it's a deal, right?
39:45
The FAA, SpaceX, it's a big deal.
39:48
It's a big rocket. But instead you took the low Rd.
39:51
Tory Ula and Blue Origin. If you think they're not working
39:57
together on this, they're both posted within the same 24 hours.
40:02
There's some stuff going on here between these two companies.
40:05
People talk, they're in the same industry, they work right down
40:08
the road from each other. So of course, somebody wrote an
40:13
e-mail, hey, we're going to release this thing or ula.
40:19
Saw. What Blue Origin did and said,
40:21
hey, we can do the same thing. Let's get on, Let's get them
40:24
guys, make a better rocket that can compete with the Super
40:28
Heavy. You wouldn't have to worry about
40:30
this. OK, so there's other parts to
40:33
this that we can go through, and Blue Origin covered most of it.
40:38
But they're disguising this as an environmental issue when in
40:43
all actuality, this is about money, baby.
40:48
Billions of dollars that they could be getting from the
40:51
government and from other sources.
40:54
Department of Defense, private contractors flying satellites
40:59
into orbit, whatever it is ula Blue Origin.
41:04
See the writing on the wall? They're scared.
41:06
They're backed up into a corner. SpaceX is eating their lunch.
41:10
Now these two are trying to fight back.
41:12
They're trying to be the bullies.
41:14
But what they're doing here is they're being sneaky, and
41:17
they're being, let's just say, a little bit underhanded.
41:24
They're using the system, the FAA and the government to their
41:28
advantage, and they're coming directly at SpaceX for this.
41:33
Now, remember, if SpaceX gets tangled up in this red tape,
41:37
they could be stuck in it for years to come.
41:40
And we couldn't see a SpaceX Starship launch from Kennedy
41:45
Space Center for two, maybe three years because of this.
41:49
What happens to the Artemis program because these two petty
41:53
companies are attacking SpaceX? I understand where they're
41:58
coming from. If they're in the blast radius
42:01
of a Starship, figure it out. The FAA, SpaceX, Kennedy Space
42:05
Center, they'll all figure it out.
42:08
And because these two bigger companies, these two big
42:11
companies, massive rocket companies are working with the
42:15
government and they're working with NASA, Kennedy Space Center,
42:18
etcetera, they have some pull. So I get it.
42:21
I totally get it, but just do it the right way.
42:27
Let them handle their business. I understand where you're like
42:29
where you're airing this out right now, but it's pretty
42:33
sketchy. It's pretty like obviously you
42:37
work together on this. No matter Like show us, show us,
42:41
show us that you didn't show us that you didn't work together.
42:45
How about that? OK, that's pretty.
42:49
It's very funny though, that like they didn't, they didn't
42:52
expect us to get that. Do you do it right?
42:56
Let them go through the proper channels.
42:58
The FAA. Let them do their thing.
43:01
If the FAA says they're ready to go, then they're ready to go.
43:05
SpaceX intends to launch a larger model at LC39A than it is
43:10
currently testing in Boca Chica. SpaceX reveal plans to at
43:14
minimum quadruple payload size to make up for shortfalls.
43:18
I'd like this the shortfalls in predicted performance.
43:22
Starship will. Eventually be 400 and. 92 feet
43:25
tall, by the way, That's freaking huge. 500 feet tall. 50
43:30
story building what? In the world.
43:34
Is going on super. Every booster is expected to
43:36
hold up to 4100 metric tons of propellant, the Starship up to
43:40
2600 metric tons. The maximum liftoff thrust is
43:43
anticipated of 103 mega Mega Newtons, resulting in launch
43:48
impacts would far exceed current impacts seen during current Boca
43:51
Chica launches. Yeah, it's a bigger rocket.
43:56
We know additional growth of the Starship.
43:57
Launch vehicle may be planned if performance continues to fall
44:01
below expectations. Given these changes, EIS must
44:05
perform a comparative analysis between current usage impacts
44:09
and the proposed operations, with a rocket proposed to be
44:12
more than double the size of any current licensed launch vehicle
44:16
and with increased frequency of launches.
44:18
So hundreds of launches per year, hundreds of launches say
44:24
100 launches say even 50 launches per year, 50.
44:30
Launches that's. 50 days that some of these engineers and
44:34
workers in the office anywhere, any driving a truck, who knows
44:38
what you're doing out there. You could just be like watering
44:40
the lawn, doing landscaping at Kennedy Space Center, but you
44:45
couldn't do it. Because.
44:46
SpaceX is launching a Starship. I get it.
44:50
Tori. I I.
44:52
Understand where you're coming. From.
44:54
SpaceX and the FAA work like this.
44:59
They work like this. They also do this.
45:01
That's a magic trick, by the way, children, this, that's a
45:04
trick my dad taught me anyway, not to be a little bit weird,
45:08
but that's a cool thing you can do, by the way, and show people
45:12
that you have magic fingers. And if you do it to a little 3
45:15
year old, they're going to be like what has happened?
45:19
SpaceX knows what they're doing. They've been working with the
45:21
FAA since inception, and the FAA is very knowledgeable about
45:29
what's going on in Boca Chica. They have to be because they're
45:33
operating with SpaceX. They're authorizing SpaceX to
45:37
launch these rockets from Boca Chica, so they know exactly
45:41
what's going on. They did damage reports for the
45:44
first second. 3rd. And upcoming launches, they're
45:48
doing all that stuff with SpaceX and they know what SpaceX is
45:51
planning. So anything they do here,
45:53
anything that Blue Origin or ula does, it's just them beating
45:59
their chest and shoving SpaceX to the side and saying, hey,
46:04
let's wrap you up in some red tape.
46:06
Let's do another environmental impact study.
46:08
They putting up pressure on the FAA.
46:11
It could. Happen.
46:13
And SpaceX could be stuck in that red.
46:16
Tape. For two years while they do an
46:20
environmental impact study to see if anything is gonna happen
46:25
with the Starship. If.
46:27
Anything goes wrong? Do you think this is right?
46:33
Ula and Blue Origin, do you think this is the right way to
46:36
do it or do you think that, you know, making this public and
46:41
posting these things on the same day, You don't think this is an
46:44
attack, direct attack on Space X2?
46:49
Two of the biggest. Space Flight companies in
46:52
existence just just so. Happened to have the.
46:55
Same idea on the same day. It's so cute, so cute.
46:59
June 25th. Hey, I got this idea.
47:03
I think I'm going to post something on my account about
47:08
the FAA. This is pretty cool.
47:10
And then that was Blue Origin, by the way.
47:12
And then ula goes, I got an idea.
47:15
You got this really great idea. I think I too am going to post
47:20
something that I don't know anything about Blue Origin, but
47:23
I'm going to do it myself. Let me just post this.
47:26
And nobody, nobody knew that this was going to happen.
47:30
Whatever, dude. These companies, they're talking
47:34
to each other. There's some background stuff
47:36
going on. They're both like, yo, what are
47:40
you going to post today? Hey, let's post this up, dude.
47:43
There's like two people, you know, there's.
47:46
There's like this. Scheme.
47:48
You know how you always think like those people that are like,
47:50
oh, there's like a dark whatever.
47:53
In the background. That's controlling things.
47:56
It's just people, right? But these people are weird.
48:00
Like these two entities ula and Blue Origin, they're like, let's
48:04
make the maximum impact against SpaceX.
48:07
Let's do it together, let's fight SpaceX.
48:11
And if we do it and there's two of us.
48:14
SpaceX can't. Fight us, because we're gonna.
48:16
Get the FAA involved, we're gonna wrap him up in this red
48:18
tape and they'll never get out. And then me being Blue Origin,
48:23
I'll be able to launch my giant rocket from Kennedy Space Center
48:28
before SpaceX launches their rocket from Kennedy Space
48:32
Center. You get a little bragging
48:36
rights. You might get some contracts
48:39
that SpaceX doesn't get because you have a flight proven.
48:41
Rocket. SpaceX doesn't have that yet.
48:45
You might get big. Contracts you might.
48:47
Get government contracts. You might get Department of
48:49
Defense contracts that are only awarded to.
48:54
Rockets that have. Made it to orbit or have done
48:57
other certain things. And if Blue Origin can push
49:01
SpaceX back from doing that from Kennedy Space Center, who knows
49:04
what kind of contracts they could get.
49:06
Millions of dollars, billions of dollars worth of contracts the
49:09
SpaceX might not get because Jeff Bezos and company ula
49:13
included Tori calling you out. Cowboy hat looks cool.
49:16
That big mustache you had look cool.
49:18
But you know what? You're a punk.
49:19
Stop it. Stop it, Jeff Bezos.
49:22
Stop it, Tori. You're being babies about this.
49:27
SpaceX is going to work with the FAA.
49:30
You didn't have to do. This this.
49:31
Is such a bitch move, dude, come on.
49:36
Come on. I know my channel's like for
49:38
fun, but this is a real bitchy thing to do, so come on.
49:42
That's all I'm saying. Christian, Thanks.
49:45
For posting this. Washington Post Christian
49:49
Davenport Good, good tweets but. If you like this kind of.
49:54
Commentary and you want to be part of this community, please.
49:57
I urge you to hit the thumbs up and the subscribe button if
50:01
you're on YouTube. If you're on your podcast
50:03
platform, please hit the follow button because it does help out
50:08
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50:12
you do a thumbs up and you do the subscribe and you do a
50:15
comment too, that'll be great too.
50:17
If you don't have anything to really say to add to the
50:20
commentary there, please just post a rocket emoji.
50:23
That'd be great because we all like Space Flight, but the
50:27
algorithm's going to pick that up for you.
50:29
Not just for me, but for you. And they'll start sending you
50:32
more spaceflight content, not just from this channel, but from
50:36
other spaceflight creators that you might not have heard about.
50:40
I do it all the time. I get random spaceflight people.
50:43
I'm like, oh. They have a different
50:45
perspective. This is cool.
50:47
So that's what the algorithm does for you.
50:48
Some podcast players do that too, but on YouTube, that's
50:52
exactly what it does. So please, like, comment,
50:55
subscribe, and if you really like this stuff, please become a
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member of the channel because it helps me out and helps me
51:03
continue to do these shows every single week and bring you all
51:07
the news and commentary about all this weird stuff that
51:09
happens in Space Flight, like this weird thing that happened
51:13
today. Let me know in the comments what
51:15
you think. All right, that's it for today.
51:17
Everybody please take care of yourselves and each other, and I
51:22
will see you in the next one. Tesla shareholders have.
51:26
Recently voted to ratify Elon Musk's 2018 stock options
51:30
package, appearing to defy a previous court ruling that
51:33
voided the pay plan. Now, this vote comes after a
51:37
January ruling by Delaware Judge Kathleen McCormick, which
51:41
rescinded Musk's compensation package due to concerns over
51:44
undue influence and misleading information provided to
51:48
shareholders. Now, Tesla attends of the
51:50
shareholder vote nullifies the court's decision, thus making a
51:54
new development in the ongoing legal battle over Musk's $56
51:57
billion pay package. Now, in January, Chancellor
52:01
Kathleen McCormick of Delaware's Court of Chancery invalidated
52:04
Musk's pay plan. The judge determined that Musk's
52:07
close relationships with some Tesla board members unduly
52:11
influenced the negotiation process.
52:13
Moreover, the company was found to have inadequately informed
52:16
shareholders about Tesla's progress toward meeting
52:19
performance based targets. This ruling posed a significant
52:22
challenge to Musk, who had been instrumental in Tesla's
52:25
emergence as a leader in the electric vehicle market.
52:29
Now the recent. Shareholder vote.
52:31
Which took place two weeks ago approved the 2018 stock options
52:35
package. Tesla argues that this approval
52:37
signals strong support from Musk's leadership and
52:40
compensation plan, effectively indicating the January court
52:43
ruling. According to Tesla's filing, the
52:46
final court order should state judgment is entered for the
52:49
defendants, indicating that the company and Musk have prevailed
52:53
in this legal contest. However, the legal team
52:56
representing the shareholders is contesting this outcome.
52:59
They're urging the judge to uphold her original ruling and
53:02
mandate that Tesla pay them potentially billions of dollars
53:06
in Tesla stock as legal fees. Richard Tornetta, the
53:10
shareholder who initiated the lawsuit, has requested 29
53:13
million shares of Tesla stock that's at around $5 billion as
53:18
their fee. Alternatively, they have
53:20
proposed a $1.1 billion payment, which they argue is based on
53:25
precedent but still unfairly low in their view.
53:29
Now Judge McCormick. Has ordered both parties to
53:31
prepare briefs addressing the impact of the shareholder vote
53:34
on the case. She has also scheduled oral
53:36
arguments on this issue for late July or early August.
53:40
On July 8th, McCormick will hear arguments specifically about the
53:44
legal fees, with a ruling expected a few weeks later.
53:48
Even if she does not reverse her January ruling, she might
53:50
consider the shareholder vote as an indication that Tesla
53:53
shareholders support Musk's compensation, potentially
53:56
undermining the fee request from the shareholders legal team.
54:01
Now Tesla. 'S assertion in the court.
54:02
Filing that Musk won the legal battle over his pay package
54:06
because of the shareholder votes reflects the company's belief
54:08
that this approval overrides the previous court decision.
54:12
Tesla's filing, made public on Thursday, argues that the
54:15
shareholder vote should lead to a final order favoring the
54:19
defendants, effectively siding with Tesla and Elon Musk.
54:23
And the legal team for the shareholders maintains that the
54:26
judge should adhere to her initial ruling invalidating
54:29
Musk's pay package. They're seeing seeking a
54:32
substantial legal fee award from Tesla, which they argue is
54:36
justified by the value they provided to the company by
54:39
having the pay package rescinded.
54:41
Tesla, however, contends that a fair fee might be as low as
54:45
$13.6 million now. On Thursday, Judge McCormick
54:49
directed both sides to begin preparing briefs outlining their
54:52
positions on how this shareholder vote affects the
54:55
case. She also instructed them to.
54:57
Argue. On a date for oral arguments in
55:00
July or early August and the judge will hear arguments about
55:03
the legal fees on July 8th and may take several weeks to issue
55:07
her ruling. Now, even if Judge McCormick
55:10
does not reverse her January decision, she might consider
55:14
that the shareholder vote demonstrated a lack of value in
55:16
winning the case between Tesla shareholders evidently support
55:20
Musk's record-breaking compensation.
55:22
This could significantly weaken the shareholders legal team's
55:25
argument for a large fee based on the purported benefit they
55:29
provided by rescinding the pay package and Musk's pay package,
55:34
which is 56. Billion dollars.
55:36
Consists of performance based targets that trigger stock
55:38
option awards. He must hold for five years
55:41
before exercising when the last target was achieved.
55:45
Now, the value of the package fluctuates with Tesla stock
55:47
prices of course, which has declined by over 20% this year
55:51
due to weaker consumer demand for E VS.
55:54
Tesla's defense team, in a motion fell down June 20th,
55:57
argued that the shareholder ratification vote vindicates
56:00
Musk's stock options award. They asserted that the
56:03
consequences of the ratification change the litigations course,
56:07
in effect any potential relief and attorney fees that might be
56:10
awarded to the plaintiff's council.
56:13
Chancellor McCormick, in response to Tesla's motion,
56:15
wrote that she wants to conduct the hearing on the legal fees
56:18
without considering the shareholder vote, as a separate
56:21
meeting will be held to address the votes impact, she said.
56:25
Given that, we will hold a separate oral argument devoted
56:28
solely to the questions raised by the stockholder vote.
56:31
For the purposes of the July 8th hearing, the parties are
56:34
instructed to argue the points at issue without regard to the
56:38
stockholder vote. All arguments.
56:40
Concerning the. Stockholder vote will be deemed
56:42
preserved now. James Park, a securities
56:46
regulation expert at the University of California, Los
56:48
Angeles, said there's an importance of considering the
56:51
shareholder votes impact on the litigation's overall value.
56:55
He said. My only thought.
56:56
Is that the? Defendant is correct that it
56:58
would be difficult to evaluate the benefit of the litigation,
57:01
which is necessary to evaluate the fee request, without
57:04
considering the impact of the shareholder ratification vote.
57:08
He added that McCormick. 'S response.
57:10
Likely indicates that she is preserving her options.
57:13
Attorneys for both Tesla and Tornetta, the plaintiff, have
57:16
not responded to requests for our comments here, and the case
57:20
outcome remains uncertain, with significant implications for
57:23
both Musk's compensation and the shareholders legal fees.
57:27
Somebody's going to be paid billions of dollars here now.
57:30
The ongoing legal battle over Musk's $56 billion pay package
57:35
continues to generate considerable attention, and
57:38
Tesla's contention that the shareholder vote nullifies the
57:41
earlier court ruling adds a kind of weird dimension to this
57:45
dispute. The final outcome will depend on
57:48
the judge, of course, and. How they interpret?
57:51
The shareholders vote impact and her ruling on illegal fees.
57:55
But despite these challenges, Musk has continued to lead Tesla
57:58
forward. It's challenging right now.
58:01
The EV market is dwindling and the companies face slower sales
58:05
and increased competition in their sales.
58:08
Musk is hinted at developing some new products outside Tesla
58:12
if he doesn't secure a large ownership stake.
58:16
This is a high stakes thing going on right now, and the
58:19
resolution of this case will likely have broader
58:21
repercussions for corporate governance in executive
58:25
compensation practices going forward.
58:27
The involvement of Tesla shareholders and ratifying
58:29
Musk's pay package shows that this is a complex matter.
58:34
They have to balance this between shareholders, investors
58:38
and the board and Elon Musk and also the courts and as the legal
58:43
proceedings. Progress.
58:45
The implications of the shareholder vote in the final
58:47
ruling on legal fees will be in everybody's mind, and it may
58:54
disrupt Tesla's stock going forward.
58:57
So be careful out there. This isn't stock advice, this
59:00
isn't investment advice, but just be careful with what you
59:04
buy in the near term if you. Plan on buying.
59:08
Tesla 'cause this could have a could have a negative or
59:11
positive impact depending on how this goes.
59:14
So just take heed there. Hey, thank you so much for
59:23
listening today. I really do appreciate your
59:25
support. If you could take a second and
59:27
hit the subscribe or the follow button on whatever podcast
59:30
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appreciate it. It helps out the show
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And each episode is about 10 minutes or less to get you
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59:43
support the show even more, go to patreon.com/stage Zero.
59:49
And please take care of yourselves and each other.
59:51
And I'll see you tomorrow.