Elon Musk’s attorneys plead with Judge to vacate $56bn Tesla pay package decision

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Elon Musk’s attorneys are in Delaware today, pleading with Judge Kathaleen McCormick to vacate her decision to invalidate the Tesla CEO’s $56 billion pay package that was ratified by shareholders this past June.

In January, Judge McCormick said Musk’s $56 billion pay package was invalidated because she felt it was an “unfathomable sum.” The voided pay was then ratified, for a second time, by investors at the June Tesla Shareholders meeting, but it did not mean Musk would receive the pay.

Now, attorneys are in Delaware attempting to get Musk paid by bringing up the second ratification to Judge McCormick. Judge David Ross said to McCormick today at a hearing that the vote by shareholders in June should be honored:

“Honoring the shoulder vote would affirm the strength of our corporate system. This was stockholder democracy working.”

Ross said the defendants were not challenging the conclusions or facts in her ruling, but that the order she wrote telling Tesla to rescind the pay package be vacated, Detroit News said.

McCormick did not seem enthused because it could set precedence that rulings could be challenged and then overturned. Delaware law has no previous record of post-trial shareholder votes ratifying what she believes is a breach of fiduciary duty.

Attorneys are baffled that Delaware law somehow overrules what investors, also known as owners of the company, voted for in what was overwhelming fashion earlier this year:

“I candidly don’t see how Delaware law can tell the owners of the company that they’re not entitled to make the decision they made.”

Donald Verrilli, another lawyer for an individual shareholder, said:

“The voice of the majority of shareholders should matter…. This lawsuit is not representing the interest of the shareholders.”

It seems undecided whether Musk’s pay package will be validated by McCormick, although shareholders have voted that it should be given.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Elon Musk’s attorneys plead with Judge to vacate $56bn Tesla pay package decision





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Tesla China sells 74,117 vehicles wholesale in July 2024

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Data from the China Passenger Car Association (CPCA) has revealed that Tesla China was able to sell a total of 74,117 vehicles wholesale in July 2024. The numbers represent a strong start to the second half of the year, and it bodes well for Giga Shanghai’s output in the third and fourth quarters. 

Tesla China’s July 2024 wholesale results represent a 4.38% month-over-month improvement from the 71,007 vehicles that were sold wholesale in June 2024. It also represents a 15.29% year-over-year improvement over the 64,285 units that were sold wholesale in July 2023.

Industry watchers have observed that Tesla China’s export activities seemed to have remained at their usual levels last month. This is quite encouraging as Europe has implemented new tariffs for electric vehicles that are imported from China, including cars that are exported from Tesla China’s Giga Shanghai facility.

With July’s 74,117 wholesale units, Tesla China has effectively sold 500,740 vehicles wholesale in the January-July period. Granted, these numbers still represent an overall 7.41% year-over-year decrease for Tesla China, but it especially bodes well for the company’s plans for the remainder of the year. 

Despite Tesla China’s 2024 figures still lagging behind the company’s 2023 numbers, CEO Elon Musk has previously noted that he expects the electric vehicle maker to see an improvement in sales this year. For such a target to happen, Giga Shanghai would have to be very productive. 

Things seemed challenging for Tesla China earlier this year, with a report from Reuters claiming that Giga Shanghai would be reducing its vehicle production output. While the publication did not indicate if the production cuts would be in effect until the latter half of 2024, a recent visit from local Chinese media suggested that Giga Shanghai was operating at full capacity once more. It would then be unsurprising if Tesla China’s results in the remaining months of the year prove equally or even more impressive than July’s 74,117 wholesale units.

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Tesla China sells 74,117 vehicles wholesale in July 2024





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Tesla lands three models in Carvana’s Top 5 EV trade-ins for Q2

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Tesla landed three of its models in Carvana’s Top 5 electric vehicle trade-ins for the second quarter of 2024, revealing many gas and EV buyers are turning their cars in for either the Model 3, Model Y, or Model S.

Tesla seems to have a knack for winning over those car owners who choose to trade their vehicles into Carvana, and sales data shows there are even several who trade in one Tesla for another.

The Model 3 and Model Y led the top five, with the Model S falling just behind the Chevrolet Bolt EUV, but in front of the fifth-place Nissan LEAF.

The Model 3 was most commonly bought by those who traded in a Honda Civic, Honda Accord, Toyota Camry, Nissan Altima, or BMW 3 Series, data from Carvana showed as they reported earnings this week.

Model Y buyers most commonly traded in the Model 3, but the Accord, Toyota Corolla, 3 Series, or Lexus IS were also commonly turned in for the all-electric crossover, which became the best-selling vehicle globally last year.

The Model S is where things get interesting. It seems Tesla drivers wanted to stick with sedans, but they also wanted to stay in the company as they bought either a Model 3 or another Model S. The Model 3 was the most common trade-in for the Model S. The Honda Accord, Model S, Mercedes-Benz C Class, and GLC followed.

Brand loyalty amongst Tesla owners has been commonly discussed over the past few years. Many of Tesla’s most loyal fans and owners tend to stay within the company so they can experience new features with a vehicle as it is updated and refreshed.

However, some choose to either size up, as many Model 3 owners did with the Model Y, or choose a more premium vehicle, as Model 3 owners did by trading into a Model S.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at . You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at .

Tesla lands three models in Carvana’s Top 5 EV trade-ins for Q2





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