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Musk to testify at trial over his $50 bn Tesla compensation

Photo: Hoy Dinero

| By AFP | Juliette Michel |

Tesla tycoon Elon Musk will take the stand on Wednesday as part of a trial over his $50 billion pay package as CEO of the electric car giant.

Musk will testify in the same Delaware court where he faced a lawsuit by Twitter to make sure he went through with his buyout of the social platform.

The $44 billion purchase of Twitter has put Musk under a deluge of scrutiny after he conducted massive layoffs, scared advertisers and opened the platform to fake accounts.

The unrelated Tesla case is based on a complaint by shareholder Richard Tornetta, who accused Musk and the company’s board of directors of failing in their duties when they authorized the pay plan.

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Tornetta alleges that Musk dictated his terms to directors who were not sufficiently independent from their star CEO to object to a package worth around $51 billion at recent share prices.

The Tesla shareholder accuses Musk of “unjustified enrichment” and asked for the annulment of a pay program that helped make the entrepreneur the richest man in the world.

According to a legal filing, Musk earned the equivalent of $52.4 billion in Tesla stock options over four and a half years after virtually all of the company’s targets were met. 

When the plan was adopted it was valued at a total of $56 billion.

The non-jury trial began Monday with testimony from Ira Ehrenpreis, head of the compensation committee on Tesla’s board of directors, who said the targets set were “extraordinarily ambitious and difficult”.

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Ehrenpreis argued that the board wanted to spur Musk to focus on Tesla at a time when the company was still struggling to gain traction.

‘Highly unusual’

The trial will run through Friday and is being presided over by Judge Kathaleen McCormick, the same judge who was to preside over the Twitter case.

There is no deadline for her decision which could take months.

It’s “highly unusual” for this kind of case to be brought to trial, Jill Fisch, Law professor at the University of Pennsylvania, told AFP.

“There aren’t all that many successful challenges to executive compensation (as) the courts have typically treated this as a business decision,” she added.

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But the court found in this case that Musk’s ownership of about 22 percent of Tesla and his role as CEO “could have an undue impact” on the board and other shareholders, she noted.

Musk canceled an in-person appearance on Sunday at an event on the sidelines of the G20 in Bali to be in court.

Asked why he had not traveled to the tropical Indonesian island, the new Twitter boss joked that his “workload has recently increased quite a lot” after his takeover of the social media giant.

International

Trump Orders Construction of New ‘Golden Fleet’ to Revitalize U.S. Naval Superiority

President Donald Trump issued an executive order this Monday for the immediate construction of two new warships that will bear his name. These vessels will be the pioneers of what he described as the “Golden Fleet,” a future generation of “Trump-class” battleships that he claimed would be “100 times more powerful” than those currently in service.

The announcement took place at his private residence in Mar-a-Lago, Florida. The President indicated that following the initial two ships, the administration aims to commission up to 25 additional vessels. He is scheduled to meet with Florida-based contractors next week to expedite production, criticizing existing defense firms for failing to deliver results efficiently.

This naval expansion is a cornerstone of Trump’s goal to revitalized the American shipbuilding industry and address the strategic gap between the U.S. and competitors like China.

The move comes amid heightened geopolitical tension. Just last week, Trump ordered the seizure of all sanctioned tankers involved with Venezuela’s “ghost fleet” to cripple the country’s crude oil industry. Since December 10, the U.S. military—deployed in the Caribbean under the guise of counter-narcotics operations—has already detained two tankers linked to Venezuelan oil transport.

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International

U.S. Judge Blocks ICE from Re-detaining Salvadoran Erroneously Deported Under Trump Administration

A U.S. federal judge ruled this Monday, December 22, that Immigration and Customs Enforcement (ICE) is prohibited from re-detaining Salvadoran national Kilmar Ábrego García, who was erroneously deported to El Salvador earlier this year during the administration of President Donald Trump.

During a hearing in Maryland, U.S. District Judge Paula Xinis ruled that Ábrego García must remain free on bail through the Christmas holidays, concluding that his initial detention lacked a legal basis. The ruling follows a request from his legal team for a temporary restraining order to prevent ICE from carrying out a new arrest.

Earlier this month, on December 11, Judge Xinis ordered his release from a Pennsylvania migrant detention center after determining that the government had detained him without a formal deportation order. In 2019, an immigration judge had already ruled that Ábrego could not be returned to El Salvador because his life was in danger.

Despite that protection, Ábrego García was deported in March 2025 following a raid by the Trump administration. Officials argued at the time that he was a gang member, and he was sent directly to the Center for the Confinement of Terrorism (CECOT) in El Salvador. In June, he was returned to the United States to face a new trial for alleged human smuggling—a charge he denies.

On Monday, Judge Xinis also temporarily invalidated a new deportation order issued by an immigration judge following Ábrego’s recent release, granting him legal protection through the coming weeks. His trial is scheduled to begin in Tennessee in January 2026.

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Fire at substation triggers major blackout in San Francisco

The U.S. city of San Francisco was plunged into darkness Saturday night after a power outage left about 130,000 customers without electricity, although the utility company said service was restored to most users within hours.

Pacific Gas & Electric Company (PG&E) said in a statement posted on X that nearly 90,000 homes had their power restored by 9:00 p.m. local time (05:00 GMT on Sunday), while the remaining 40,000 customers were expected to have service restored overnight.

Large areas of the city, a major technology hub with a population of around 800,000, were affected by the blackout, which disrupted public transportation and left traffic lights out of service during the busy weekend before Christmas, a crucial period for retail businesses.

“I know it’s been a difficult day,” San Francisco Mayor Daniel Lurie said in a video posted on social media from the city’s emergency operations center. “There has been progress, but for those still without power, we want to make sure they are safe and checking in on their neighbors,” he added.

Lurie said police officers and firefighters advised residents to stay home as much as possible. He also noted that officers and traffic inspectors were deployed to manage intersections where traffic lights were not functioning.

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The mayor confirmed that the outage was caused by a fire at an electrical substation. Parts of the city were also covered in fog, further complicating conditions during the incident.

As a result of the blackout, many businesses were forced to close despite it being the weekend before Christmas. The sudden drop in shopper traffic ahead of the holiday is “devastating” for retailers, the manager of home goods store Black & Gold told the San Francisco Chronicle.

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