Topics
Latest
AI
Amazon
Image Credits:Justin Sullivan / Getty Images
Apps
Biotech & Health
Climate
Image Credits:Justin Sullivan / Getty Images
Cloud Computing
Commerce
Crypto
Enterprise
EVs
Fintech
fund-raise
appliance
Gaming
Government & Policy
Hardware
Layoffs
Media & Entertainment
Meta
Microsoft
Privacy
Robotics
Security
societal
Space
startup
TikTok
Transportation
Venture
More from TechCrunch
issue
Startup Battlefield
StrictlyVC
Podcasts
TV
Partner Content
TechCrunch Brand Studio
Crunchboard
Contact Us
Tesla has spent around $ 200,000 on advertizing through February on Elon Musk ’s social medium platform , X , after the CEO caved to shareholder pressure last year and said his company would “ essay a little advertising . ”
Since then , Tesla advert have showed up in place like Google search results and on YouTube . But it was also more and more apparent that Elon ’s machine companionship was paying Elon ’s social media party to publicize , too . We now get it on how much Tesla paid X thanks to inside information released Wednesday in its annualproxy statement , which include a section on “ related person minutes ” the company has made . ( Tesla has not disclosed how much it has spent on advertising overall . )
Tesla also paid X around $ 50,000 in 2023 and $ 30,000 through February 2024 for “ commercial-grade , consulting and support accord . ” Likewise , X paid Tesla $ 1 million in 2023 and around $ 20,000 through February 2024 for the same unspecified workplace . Tesla does n’t say precisely what those accord entail , but the ship’s company have reportedly shared or loaned employees stick with Musk ’s acquisition of X and his increase focus on building AI products at each business .
Essentially , all of Musk ’s companies have engaged in transactions like these over the year , and 2023 was no different . The placeholder filing register that SpaceX pay off Tesla $ 2.1 million in 2023 and approximately $ 800,000 through February 2024 for “ certain commercial message , licensing and put up agreements with Tesla . ” Tesla , meanwhile , paid SpaceX $ 700,000 in 2023 and $ 100,000 through February 2024 for the habit of a embodied jet have by Musk ’s blank company . Tesla paid Musk ’s tunneling crusade , The Boring Company , $ 200,000 in 2023 and $ 1 million through February 2024 .
Curiously , Tesla enounce that in December 2023 , it hired a security company owned by Elon Musk to provide protection services for him , “ including in connection with his duties to and work for Tesla . ” The society enounce that already cost $ 2.4 million in 2023 and around $ 500,000 through February 2024 . It adds that this is only “ a helping of the total cost of surety services come to Elon Musk . ”
in the end , Tesla also says it was paid $ 11.5 million in 2023 and around $ 6 million through February 2024 for scrap material by EV barrage fire recycling fellowship Redwood Materials , which is range by Tesla gameboard extremity ( and former CTO ) JB Straubel .
Texas reincorporation
All of this financial back - and - forth comes as Musk is still in the middle of trying to attract a recentdecisionby the Delaware Chancery Court that struck down his monolithic 2018 stemma compensation program . The judge made that decision in part because she believe Tesla “ inaccurately described primal directors [ of Tesla ’s board ] as independent and misleadingly omitted key details about the process ” of putting the computer software together .
Join us at TechCrunch Sessions: AI
Exhibit at TechCrunch Sessions: AI
Musk was furious with the decision and posted on X shortly after that Tesla would “ move straight off to hold a stockholder right to vote to shift state of incorporation to Texas , ” where Tesla has already relocate its physical central office .
The placeholder reveals that Tesla ’s card started a physical process shortly after to evaluate the melodic theme — they also say they had antecedently consider moving the fellowship ’s state of matter of incorporation , but never decided to — because “ redomestication is a Board decision , not a determination for a chief executive officeholder . ” A special committee was constitute , led by board phallus Kathleen Wilson - Thompson . She hired two lawyers from Sidley Austin to represent the committee and engaged an expert lawyer from Delaware , a Chicago law prof , and Houlihan Lokey as fiscal consultant to help with the process . They also set out to determine what to do about re - voting on Musk ’s affect compensation package .
Over eight weeks , Wilson - Thompson ’s citizens committee contact 16 time for more than 26 hours , and Tesla says she in person spent “ more than 200 hours ” working on the topic . The Sidley lawyers spent “ more than 600 hours each ” on the issue and were supported by “ more than 40 other Sidley lawyers . ” Through this process , seven board directors and five fellow member of Tesla ’s management were interview .
Tesla sound into contingent about how multiple nation were reckon , before narrowing down to Texas since companies be given to either be incorporated in Delaware or their domicile state . And the decision was ultimately made to put the move and the “ re - confirmation ” of Musk ’s bloodline plan up to a shareholder voter turnout at the companionship ’s yearly meeting , which will now take berth on June 13 . While it ’s hard to imagine either of those vote failing , they are probable to stir up even more sound debate after that right to vote takes place . Musk and his crony Kimbal , who is a board fellow member , are recused from vote on the move “ because of [ Musk ’s ] anterior posts on X about reincorporation . ”
“ The Committee and its counsel are cognisant of the metier narrative regarding Musk , Tesla , and its Board , ” the commission pen in the proxy . “ And the Committee ’s workplace was behave against a background of unrelenting public interest in whether Tesla would reincorporate and in Musk ’s compensation . Far from being influenced by these factors , this outside narrative and attention escalate the committedness of the Committee and its counselor to conduct a staunchly independent physical process . ”
This story originally misstate who was getting paid in the arrangement between Redwood Materials and Tesla . Redwood Materials has paid the money to Tesla .
