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Cardano’s Charles Hoskinson Reacts to Elon Musk’s Latest Achievement

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Tesla shareholders have voted overwhelmingly to approve a $56 billion pay package for CEO Elon Musk and to move the electric vehicle maker’s legal home to Texas. Musk confirmed the shareholder resolutions on social media on Wednesday, noting the wide margin of approval.

Both Tesla shareholder resolutions are currently passing by wide margins!

♥️♥️ Thanks for your support!! ♥️♥️ pic.twitter.com/udf56VGQdo

— Elon Musk (@elonmusk) June 13, 2024

In his post on X (formerly Twitter), Elon Musk expressed his gratitude for the support. The substantial shareholder endorsement of Musk’s pay package, the largest remuneration terms in U.S. corporate history, is poised to alleviate investor concerns about Musk’s future with the company. This approval also arms Tesla in its ongoing legal battle to overturn a previous court decision that invalidated the pay package.

Despite this significant vote, Musk is still faced with a protracted legal struggle. A Delaware judge previously asserted that the Tesla board was «beholden» to Musk, a claim that the company must counter. Furthermore, the approval could potentially trigger new lawsuits related to the vote. The final results of the shareholder meeting will be announced at Tesla’s headquarters in Texas at 4:30 p.m. on Thursday.

Charles Hoskinson reacts

Charles Hoskinson, the founder of Cardano (ADA), expressed his views on Musk’s tweet, criticizing the Delaware judge’s previous decision. Hoskinson tweeted that a supermajority of the owners had approved the pay package that was taken away by a judge in Delaware. He criticized the judge for wanting to hand over $5 billion of shareholder money to lawyers representing a person with just nine shares of Tesla stock and advised never to incorporate in Delaware.

So again, a supermajority of the owners approved the pay package taken away by a corrupt judge in Delaware who wants to hand 5 billion dollars of shareholder money to lawyers representing a person with 9 shares of tesla stock.

Never ever incorporate in Delaware. #ChooseWyoming https://t.co/vUTt8uJbFc

— Charles Hoskinson (@IOHK_Charles) June 13, 2024

Hoskinson’s comment highlights the controversy surrounding the court’s ruling and the broader implications for corporate governance and incorporation. The Cardano founder’s strong reaction shows the tension between Tesla’s leadership and judicial oversight, reflecting a sentiment that may resonate with other corporate leaders and shareholders.

This episode adds another layer to the ongoing saga of Elon Musk’s leadership at Tesla, marked by his ambitious pay package and the strategic shift of Tesla’s legal domicile. As the company navigates these legal challenges, the outcome of the shareholder vote signals robust support for Musk’s vision and strategy for Tesla’s future.

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