In a dramatic twist in the dispute involving Tesla CEO Elon Musk, Cardano founder Charles Hoskinson has publicly expressed his support for Musk following a Delaware judge’s revocation of Musk’s $55 billion remuneration plan. Furthermore, Hoskinson chastised political figures for using the legal system to prey on their opponents.
Cardano Founder Extends Support to Elon Musk
On May 20, 2024, Charles Hoskinson took to X and stated his support for Musk. The Cardano pioneer uploaded a YouTube video from Dave Rubin’s ‘The Rubin Report’ about Musk being “stabbed in the back.” Hoskinson described the verdict as “shameful” due to the apparent political influence. The video references Kanekoa The Great’s tweet from February 2024.
The tweet highlighted Judge McCormick’s experience with prominent political personalities. She worked as a partner at the Delaware legal firm Young Conaway before becoming the chairman of the Delaware Chancery Court. Furthermore, the corporation and its employees contributed significantly to President Joe Biden.
Furthermore, in 2016, Hunter Biden sponsored a campaign event at Young Conaway’s offices, during which President Joe Biden spoke. Congressman John Carney, a friend of Joe Biden, who eventually nominated McCormick for the judicial position, is also connected to the firm.
The tweet also contained a comment from Hunter Biden’s 2018 email. The statement claimed his knowledge of every judge on the Delaware Chancery Court and implied his power within the court. Furthermore, it highlights McCormick’s rulings against Tesla’s CEO during his Twitter takeover and the subsequent government investigations into Musk’s companies. This has sparked claims of political bias and legal weaponization against Musk.
The Cardano founder repeated these worries in response to a user who questioned the significance of this issue in the context of global challenges. Hoskinson noted, “Weaponizing the judicial system to punish political opponents? Yes, it undermines the core underpinnings of a free society, bringing all of the world’s problems home to America.”
About the ruling
The landmark decision reversed the $55 billion reward package for Musk, which had been authorized by Tesla’s board and 80% of its shareholders. Furthermore, Judge McCormick’s decision, issued on January 30, 2024, rendered Musk’s unprecedented remuneration deal unlawful.
The package, provided by Tesla’s board of directors in 2018, was designed to incentivize Musk to meet specific benchmarks. This includes a market price of $650 billion, which is an audacious aim since Tesla’s valuation was more than tenfold lower then.
However, the shareholder case that resulted in this verdict accused Musk and Tesla’s board of breaking their duties. The lawsuit claimed that the board and Tesla CEO engaged in fraudulent talks, resulting in unjust enrichment for Musk. As a result, the judge decided to rule in favour of the shareholders. Nonetheless, Tesla has kept going as it works to present Musk with the promised bundle.
