Wilmington, United States, Nov 16 (AFP/APP):Tesla tycoon Elon Musk on Wednesday defended his $50 billion pay package as CEO of the electric vehicle giant, arguing that the pioneering company was on the verge of collapse when the deal was agreed.
Musk is being sued, along with Tesla and some board members, by a shareholder who accuses them of improperly signing off on “the largest compensation package ever awarded to an executive.”
Around 2018, when the pay deal was approved, investors “thought we would fail and go bankrupt,” Musk told a courtroom in Wilmington, Delaware.
“We were in quite a tough position at the time. We were losing a lot of money… The probability of survival was extremely low,” he said.
Musk testified in the same Delaware court where he faced a lawsuit by Twitter to ensure he went through with his buyout of the social platform.
The $44 billion purchase of Twitter has put the South African billionaire under intense scrutiny after he conducted massive layoffs, provoked concern among advertisers, and struggled to control a surge of fake accounts.
Musk arrived discreetly at the hearing in a black Tesla, which parked at the back of the courthouse in a tent set up for the occasion.
A few minutes later, wearing a black suit and tie, he passed through security to enter the building.
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