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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts
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To: Sun Tzu who wrote (83829)1/30/2024 7:32:12 PM
From: Qone01 Recommendation

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ajtj99

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It's relevant.

“Colonizing Mars is an expensive endeavor,” the judge wrote. “Musk believes he has a moral obligation to direct his wealth toward that goal, and Musk views his compensation from Tesla as a means of bankrolling that mission.”

Musk thinks Tesla is his own private ATM machine. The more I look into it. The shadier it gets.

Tesla's bylaws contain supermajority voting requirements that require the approval of two-thirds of shares to OK major changes at the electric-car maker, including mergers, acquisitions or changes to the board's compensation.

Activist gadfly James McRitchie has submitted shareholder proposals in 2014 and 2016 to do away with Tesla's supermajority voting rules. In an interview, he notes that currently insiders -mostly Musk -- control about 25.5% of Tesla's shares and as a result, without Musk's support, a minimum of 89.5% of outside shares must vote to approve key changes -- an incredibly high hurdle.

The matter of Musk's control over outside shareholders emerged in recent months in a class action lawsuit over the electric-car maker's 2016 $2.6 billion acquisition of solar panel maker SolarCity in an all stock deal. The lawsuit, which is ongoing, claims that the acquisition was a bailout of SolarCity to the detriment of Tesla shareholders.

"Tesla is being sued over the SolarCity acquisition, where Elon Musk went to the board and said, 'we should buy SolarCity, this company where I am the biggest investor and where I am chairman of board and where my cousin is CEO.'" Shill said. "After he brought it up two more times [to Tesla's board], they eventually bought the company."

All is not rainbows and butterflies inside Tesla.
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