Submitted by QTR's Fringe Finance
Today’s read is from my friend Montana Skeptic - a strident critic of Tesla and Elon Musk who has appeared on my podcast numerous times. He is one of the most thoughtful analysts I’ve come to be a frequent reader of and I find his perspective on the continuing Tesla saga to be a must, whether you’re a bull, bear or otherwise.
He has a J.D. degree from Yale Law School, practiced for 30 years as a trial lawyer in commercial cases, and in the decade that followed managed a $1B+ portfolio for a family office.
You can subscribe to his Substack for free here.
Today’s piece, published with his permission, details why Skeptic believes that Tesla’s latest proxy statement — including a package to ratify Elon Musk’s 2018 pay plan — should be ratified.
Skeptic lays out his objections to this idea and a number of other red flags he sees with the EV maker’s latest major SEC disclosure. Additionally, my latest analysis of Tesla, entitled “The Musk of Desperation” can be read here.
On April 17, Tesla’s Board of Directors announced that the company will hold its 2024 annual meeting on June 13, and sailed out a lengthy proxy statement that includes a management proposal to “ratify” Elon Musk’s 2018 compensation package that was voided earlier this year by the Delaware Court of Chancery’s decision in Tornetta v. Musk.
Tesla’s attempt (or, more accurately, Elon Musk’s attempt) to reinstate the 2018 compensation package is problematic at many levels. Rather than trying to describe all the issues in a single post, I am going to write about them topic-by-topic. Today’s focus is the proxy statement.
(Hey, look ma! No hands! Elon Musk & CBS’s Gayle King)
I. No Sins of Either Commission or Omission Are Allowed
When shareholder votes are solicited by public companies, U.S. law requires that those companies prepare proxy statements to inform shareholders about the issues at hand. The law is clear about the nature of the information:
So, two key points. The company may not make any statements that are false or misleading, and the company...(READ THIS FULL ARTICLE HERE)
