Little bit of a piece of breaking news related to Tesla So if you're a Tesla shareholder, if you actively trade it, you want to pay attention. A pivotal decision was just made by a Delaware Judge Musk's $55 billion pay package voided threatening world's Biggest Fortune This is prompting quite a bit of drama. A Delaware judge voided the $56 billion compensation package of Tesla SE o Elon Musk The pay package that Tesla granted Musk in 2018 was the largest Compensation Plan in public corporate history Tesla not long ago 196 and then after the market when we got the results of this from the judge 192 came all the way down to 182, dropped 10 Buck Rus and as I'm filming this down 2.5% and basically the shareholders are now a little bit worried because of all the drama really related to if it's not approved. Will Elon take some of his ideas and business plans to a different business not under the Tesla umbrella Because obviously Elon's still going to be doing cool things and if he ends up developing AI or something like that and it's not under the Tesla business umbrella, that means Tesla investors aren't going to get business exposure to it via the stock market, but this is what uh, Dan IES had to say on it.

Investor plaintiffs argued that the package was just excessive. Elon has gone back to his board and said no, no, no, I need more stock in this company in order for you to keep my brain power. Where do you come down on this I mean the biggest very quickly, not necessarily more stock. He wanted more voting power and a lot of the times stock and voting power one and the same.

But there are ways to make preferred stock or super stock where you have the same stock amount the same Financial investment. but you could actually have more voting power. So Elon was very clear and I don't think that was the best way to explain it. He just wants more voting power in Tesla and right now he's in the realm of 13ish per and he wants to be at 2025 and obviously like I Don't think he would deny it if he ended up getting actual like Financial stock with it, but it was more about voting power.

This asset in Tesla is musk. Musk is Tesla Tesla is musk and obviously this is a jaw-dropper that ultimately that came down in Delaware I I Like this, Elon did get mad right after never incorporate your company in the state of Delaware Bo ultimately goes back to the drawing board and comes out with a compact that could supersede this and maybe get M to what we believe could be C 25% you know, voting interest. This is It's a pivotal time for Tesla and there the board is not going to take this sitting down. This is some they're going to fight and I think it could actually be aha moment for musk and the board thinks it could be an aha moment.

But that wasn't the only commentary on the situation. Also, here's a little bit of a breakdown from Bloomberg The judge has voided Elon Musk's 55 billion Tesla pay package we want to go now to Bloomberg Technology Co-host Ed Ludo in San Francisco Ed What else can you tell us? Well, in the first instance, Tesla's Shares are down significantly in the aftermarket, more than 2% What shareholders alleged in their suit is that Tesla's board and its directors did not act with impartiality when setting the $55 billion uh compensation which is a a historic record for any compensation package for a publicly traded CEO and the judge in this case Kathleen St Jude Mccormic is agreeing with that in the that investors had to go to clarify whether or not there were conflicts of interests in the apportioning of that that reward and as you can see the market paying attention. When Mus took the the stand to basically defend his position in that compensation, he said well, I had nothing to do with it I don't set my own pay so how could there be any leverage that the board would put over me or me over the board? Uh, which is what the the conflict of interest in question? Uh, the concern was about to my current understanding I Really wouldn't be surprised if this goes through a couple more iterations of the court and Musk ends up being Victorious Just it seems like it's a little bit flimsy, but this argument of like oh, just noting that it's the biggest compensation ever. Okay, some some CEO out there is getting the biggest compensation and it it seems a little bit more of just to be like the classic like anti-musk rhetoric and it'll be interesting to see how this plays out.

but in real time that's why it's down right now because obviously investors are like uhoh, if Musk decides to go do stuff elsewhere is that that not going to benefit the stock then so I guess on that particular note, little bit of drama related to Elon that's why Tesla stocks are getting hit in real time and I guess my question for you is you going to just buy this dip or you going to wait to see how it plays out and also maybe you have a thought, an opinion or two if you will on this pay package. In my opinion it's the concept of like you eat what you kill. This wasn't just given to him, it was extraordinarily high performance bars he had to clear to get it. and then he did that and that benefited everyone.

There's there's a reason why Tesla's the number one automaker in the entire world. There's a reason Tesla's leading the EV Revolution is because a lot of these pay packages have been like formulated in a certain sense where you need to perform better and better and better. And then when you hit those goals of course you get the compensation for it. So I'm a little bit confused why even some of these investors brought up this lawsuit.

It kind of I I Don't fully get it? Uh, and it'll be interesting to see how it all ends up playing out.