Source: Global Market Report On Monday, the turnover of US stocks ranked first, closing up 0.75% with a turnover of $38.014 billion. Since the opening on June 10, Nvidia's stock has been trading at adjusted prices after the split. The overall value of Nvidia is not expected to change after the split, and the lower stock price will make it easier for investors to reach. In terms of product structure, the operating income of 10-30 billion yuan products is respectively 401/1288/60 million yuan.
After convincing shareholders at Tesla to support Elon Musk's $56 billion compensation plan, a new legal battle is underway to determine whether Musk can actually receive this money.
Last week, Tesla submitted a court filing to the Delaware Chancery Court which previously announced that Musk's compensation plan was invalid, arguing that the June 13 shareholder vote provided a "principled solution" for the Court to make a ruling favorable to Musk.
In response, Greg Varallo, the representative lawyer for the plaintiff Tesla shareholder, argued in a separate court filing that Tesla's shareholder resolution should not have legal effect on the judge's initial decision and that Tesla has no right to use extrajudicial votes to overturn the Delaware Court's ruling.
Varallo also stated that if Tesla wants to overturn the judge's decision, it must appeal to the Supreme Court of Delaware.
For Tesla, Musk's controversial compensation plan must now be resolved through the U.S. court system. This is an uncertain road and there is a long way to go.
If the court gives Tesla what it wants, then Tesla can continue to maintain Musk's compensation plan, as well as the $2.5 billion accounting fee agreed upon by shareholders when they first approved the compensation plan in 2018. Otherwise, Tesla may be forced to vote on Musk's compensation plan for the third time and include at least $25 billion in expenses, which could threaten Tesla's future earnings.
"Everything here is unprecedented," said Kevin Murphy, compensation expert and finance professor at the Marshall School of Business, University of Southern California.
This unprecedented nature means that the solution is also unknown.
This new legal battle will once again shine a spotlight on Delaware Judge Kathaleen McCormick, who in January rejected the compensation plan, noting that Tesla's board of directors did not act in the best interests of Tesla shareholders when approving Musk's $56 billion compensation agreement.
Ann Lipton, a corporate law professor at the Tulane School of Law, said McCormick must now make a ruling on whether the new shareholder vote can truly restore Musk's compensation plan.
Lipton said McCormick could choose to make a ruling by considering written and verbal arguments from both sides. Alternatively, the judge may ask the parties to submit more information and conduct additional evidence discovery to expose other facts and evidence. In addition, the judge may hold a hearing similar to a new case.
As for Tesla, the company has asked the judge to set a fast schedule where both sides will submit additional arguments containing their positions before McCormick makes a final ruling on the matter. Tesla said each party should be allowed to make these arguments before McCormick makes her final decision.
Last Friday, Tesla's lawyers described the recent shareholder vote in support of Musk's compensation plan as "one of the most informed shareholder votes in recent memory," and noted that the world's two most sophisticated investors, BlackRock and Vanguard, both support the compensation plan.
Tesla said 72% of shareholders, excluding Musk and his brother, Kimbal, voted in favor of the compensation plan.
McCormick is scheduled to hold a hearing on July 8, during which she also plans to address other outstanding issues in the case. One of these is the $6 billion legal fees requested by shareholder representative lawyers, which Tesla objects to.
Murphy believes McCormick will not approve the compensation plan and that Tesla will appeal. Lipton also believes that McCormick is unlikely to have final decision-making power. "Regardless of which side loses, they will appeal to the Delaware Supreme Court," he said.
Editor/Jeffy