tl;dr
Three law firms are seeking nearly $6 billion in Tesla (NASDAQ:TSLA) stock as their fee for successfully getting Elon Musk's $55 billion pay package nullified by a Delaware court, according to court filings.The law firms, including New York-based Bernstein, Litowitz, Berger & Grossmann and Friedman ...
Three law firms are seeking nearly $6 billion in Tesla (NASDAQ:TSLA) stock as their fee for successfully getting Elon Musk's $55 billion pay package nullified by a Delaware court, according to court filings.
The law firms, including New York-based Bernstein, Litowitz, Berger & Grossmann and Friedman Oster & Tejtel, as well as Wilmington, Del.-based Andrews & Springer, claim that they are entitled to just over 11% of the shares that would have gone to Musk as part of his pay package, or about 29.4 million shares, based on Tesla's last closing price of $202.64. The court's decision to void Musk's 2018 stock option grant came in response to a shareholder lawsuit filed by former heavy metal drummer Richard Tornetta on behalf of fellow Tesla investors, alleging that the package was unduly approved. If awarded, the fee would represent the biggest payday for attorneys in a corporate case, leading to criticism from Musk, who called the requested fee "criminal" and criticized the legal system.
More about Tesla Inc
Tesla, Inc. is a leading American electric vehicle and clean energy company, with a strong presence in the plug-in and battery electric car segments, capturing 16% and 23% of the respective markets in 2020. The company also excels in the development and installation of solar photovoltaic energy generation systems, and is a major global supplier of battery energy storage systems. In terms of financials, Tesla reported a total revenue of $64.5 billion and a net income of $206.22 million in 2020. The stock performance showed a high of $47.13 and a low of $30.49, with a current price of $4.3. Market sentiment is cautiously optimistic, given the company's strong performance and market presence, but potential risks and uncertainties should be considered due to the volatile nature of the stock market and the clean energy industry.
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