WILMINGTON, Del. — Elon Musk said he was completely focused on Tesla Inc. in 2017 when the electric car maker was in “crisis,” in testimony on Wednesday to rebut claims that his $55 billion pay package was based on easy performance targets and approved by a compliant board of directors.
Tesla shareholder Richard Tornetta sued Musk and the board in 2018 and hopes to prove that Musk used his dominance over Tesla’s board to dictate terms of the package, which did not require him to work at Tesla full-time.
Musk, the world’s richest person, in a Delaware courtroom described how the automaker was struggling to survive in 2017, when the pay package was developed.
“I was entirely focused on the execution of the company,” Musk said when he was questioned about Tesla by his attorney Evan Chesler, adding that he did not dictate the terms of the pay plan.
He said he would not accept a pay plan that required him to punch a clock or commit certain hours to Tesla. “I pretty much work all the time,” he said. “I don’t know what a punch clock would achieve.”
The five-day trial before Chancellor Kathaleen McCormick comes as Musk is struggling to oversee a chaotic overhaul of Twitter, the social media platform he was forced to buy for $44 billion in a separate legal battle before the same judge after trying to back out of that deal.
Musk, who arrived in a black Tesla and was led into the courtroom via a separate entrance due to safety concerns, completed his testimony on Wednesday in just under three hours. He was followed on the stand by Antonio Gracias, a Tesla board member from 2007 to 2021.
The billionaire testified that he focuses his attention where it is needed most, which in 2017 was Tesla.
“So in times of crisis, allocation changes to where the crisis is,” said Musk.
Musk has a history of combative testimony and often appears disdainful of lawyers who ask probing questions. In past trials, he has called opposing attorneys “reprehensible,” questioned their happiness and accused them of “extortion.”
Musk was more restrained in Wednesday’s proceedings, although he chafed at probing questions.
At one point, Musk told the plaintiff lawyer, “your question is a complex question that is commonly used to mislead people.”
Musk acknowledged that he was not a lawyer but added “when you’re in enough lawsuits you pick up a few things.”
