- Tesla CEO Elon Musk criticizes Delaware judge Kathaleen McCormick, who ruled against him in a Twitter-related deal, and plans to seek shareholder support to move Tesla’s incorporation to Texas.
- Musk has a history of openly showing disdain for institutions and has previously criticized the Securities and Exchange Commission and sued the National Labor Relations Board.
- Musk frames McCormick’s ruling as politically motivated and uses his social media platform, with 171 million followers, to shape public opinion and portray the issue as an attack on shareholder rights.
Additional Coverage:
Tesla CEO Elon Musk has launched an attack on Delaware judge Kathaleen McCormick, who recently ruled against him in a Twitter-related deal. McCormick, who presides over the Chancery Court in Delaware, is known for protecting the state’s pro-business image. However, she refused to allow Tesla to pay Musk $56 million in compensation, leading him to criticize her on his social media platform, X. This is not the first time Musk and McCormick have clashed, as she previously prevented him from backing out of a contract to buy Twitter for $44 billion. Now, Musk plans to seek shareholder support to move Tesla’s incorporation to Texas.
Musk has a history of openly showing his disdain for institutions that obstruct his ambitions. He has previously criticized the Securities and Exchange Commission, branding them “shameless puppets of Wall Street short seller sharks.” He also sued the National Labor Relations Board last month, contesting its legitimacy. Musk has even mocked federal agencies, jokingly referring to Institutional Shareholder Services as “ISIS” during an investor call.
Musk’s antagonism towards McCormick is not surprising, given his ability to operate freely within his own companies. He admitted during court testimony that his pay deal at Tesla involved him negotiating against himself. However, he is now framing the ruling as politically motivated, encouraging his supporters to believe that McCormick has disenfranchised them and disregarded their vote for his compensation package. Musk has shared posts from influential members of the Tesla community that portray the issue as an attack on shareholder rights or claim that the court is rigged. He has also endorsed false information about McCormick’s background, suggesting that she is an art graduate from Harvard, when in fact she studied philosophy.
With his massive following of 171 million on social media, any posts Musk engages with automatically receive a boost from the algorithm, giving him a powerful platform to shape opinions.