Elon Musk’s mom Maye preps first book

Maye Musk — the mother of controversial Tesla and SpaceX founder Elon Musk — has written her first book. An insider tells Page Six that Musk’s tome …

Maye Musk — the mother of controversial Tesla and SpaceX founder Elon Musk — has written her first book.

An insider tells Page Six that Musk’s tome “A Woman Makes a Plan,” will focus on her life as a single mom before her son’s businesses made her family wildly rich.

“It wasn’t always the Musk life you see now. [The book] talks about raising kids alone, and the financial struggles they went through,” said an insider. “It’s also going to be about her dating life, marriage and the fashion industry. She was blocked by agents and couldn’t get work for years. Now, she’s a global success in what she calls the ‘prime of her life.’”

Musk also discusses struggling through poverty and dealing with weight issues as a plus-size model. The book goes on sale Dec. 31.

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Tesla seeks dismissal of suit challenging Musk pay package

A Delaware judge is weighing whether to dismiss Tesla shareholders’ complaints over a compensation plan that could net CEO Elon Musk more than …
ByRandall Chase | AP

May 9 at 6:52 PM

DOVER, Del. — Attorneys for Tesla Inc. asked a Delaware judge Thursday to dismiss shareholders’ complaints over a compensation plan that could net CEO Elon Musk more than $50 billion over the next decade.

A shareholder lawsuit filed last June alleges that Musk and Tesla’s board of directors breached their fiduciary duties to the company and its stockholders, granting unjust enrichment to Musk and wasting corporate assets.

The lawsuit said the pay plan is not just excessive but unnecessary, and that it should be subject to court review because it was negotiated by a compensation committee and approved by a board whose members had conflicts because of personal and professional ties to Musk.

“Those numbers were negotiated by conflicted people,” shareholder attorney David Tejtel argued Thursday, referring to the staggering sums involved in Musk’s compensation package.

Under the plan, Musk could reap billions if the electric car and solar panel maker hits ambitious market capitalization and operational milestones. For each of 12 milestones the company achieves, Musk, who already owns more than 20% of Tesla, would get stock equal to 1% of outstanding shares at the time of the grant.

Each milestone includes growing Tesla’s market capitalization by $50 billion and meeting aggressive revenue and pretax profit growth targets.

“He’s nowhere near getting paid a nickel as we speak,” noted Vice Chancellor Joseph Slights III.

Musk would receive the full benefit of the pay plan, $55.8 billion, only if he leads Tesla to a market capitalization of $650 billion and unprecedented revenues and earnings within a decade.

“If he doesn’t generate outsized returns … he gets nothing,” Tesla attorney William Savitt said of the all-or-nothing package. “It creates massively ambitious targets.”

After 15 years in business, Tesla has yet to turn a full-year net profit. Last month, the company reported a first-quarter loss of $702 million, more than double what analysts had expected and ranking among the company’s worst quarters in the past two years.

Savitt argued that the lawsuit fails to adequately allege that Musk’s new compensation package constitutes waste or is unfair to stockholders, who themselves would see significant benefits of their investment if the milestones are reached.

Just because the pay proposal is unusual and on a grand scale doesn’t make it unfair, said Savitt, who noted that at a special shareholder meeting last year it received the support of more than 70% of shares of common stock not owned by Musk or his brother, Kimbal Musk.

Tejtel, the plaintiff’s attorney, noted that the proposal did not earn the support of the majority of all of Tesla’s outstanding disinterested shares, but only a majority of shares represented at the meeting, either in person or by proxy. The failure to gain a majority of all outstanding shares means the deal is subject to court review, he argued.

Under Delaware’s “business judgment” rule, deference is typically given to a corporate board’s decision-making unless there is evidence that directors had conflicts or acted in bad faith.

If a plaintiff is able to overcome the business judgment rule’s presumption, the board’s action is then subject to an “entire fairness” analysis,” which shifts the burden to the corporation to show that the deal involved both fair dealing and fair price.

“It seems that what we’re talking about here is scale,” said Slights, who told attorneys he would try to issue a decision promptly.

Shares in Tesla, based in Palo Alto, California, fell $2.86, or 1.17%, to close Thursday at $241.98.

Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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3 famous innovators whose mothers were key to their success

Mother’s Day is Sunday, May 12. Philip Seymour Hoffman, Jane Goodall, and Elon Musk all received extraordinary support from their mothers. Without …

​Elon Musk

Before Elon Musk founded enormously successful companies such as SpaceX and Tesla, he and his brother, venture capitalist Kimbal Musk, founded a software company called Zip2 in 1995. It wasn’t an immediate success. Elon and Kimbal’s mother, Maye Musk, was working for the company at the time, performing duties such as overseeing interns and vetting business plans. Maye, who was a model, dietician, and business-owner herself, ended up donating $10,000 of her savings to keep the company afloat. She later said it was her “best investment ever.”

A few years later, Compaq bought Zip2 for $307 million.

“I don’t stop my kids from doing anything they think is right,” Musk told Forbes. “As long as you’re doing something that is good for the future, then I think you should remain positive and do it.”

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Tesla’s Board Is Becoming More Independent—4 Directors at a Time

After losing his own position as Tesla’s board chairman last year, Elon Musk will soon see several friends of his leaving Tesla’s boardroom. In an SEC …
Elon Musk Tesla

Tesla’s board reshuffle came just weeks after a group of shareholders sued the company. Spencer Platt/Getty Images

After losing his own position as Tesla’s board chairman last year, Elon Musk will soon see several friends of his leaving Tesla’s boardroom.

In an SEC filing last Thursday, the electric carmaker revealed that four directors on the company’s 11-person board will not stand for re-elections after their terms end in the next two years. Tesla said the downsizing would “allow it to operate more nimbly and efficiently.”

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Among the four departing directors, Brad Buss, the former CFO of SolarCity (acquired by Tesla in 2016), and Linda Johnson Rice, CEO of Johnson Publishing Company, will leave Tesla in June once their terms end.

Steve Jurvetson and Antonio Gracias, both close confidants of Musk and directors of his rocket company, SpaceX, will step down next year, as well (although Gracias’ term doesn’t expire until 2021).

The board shuffle came less than two months after a group of shareholders sued Tesla’s entire board for its lack of oversight on Musk’s tweeting behavior, which they claimed had harmed the company.

The case, brought up by an Ohio pension fund in March, sought a permanent injunction against Musk over “his unchecked use of Twitter to make inaccurate statements about the company” in addition to unspecified monetary damages.

Tesla’s board has often faced criticism for their friendliness with Musk. The CEO had acted as chairman for over a decade until being ousted last September due to an SEC settlement. The company found his replacement, Australian telecom executive Robyn Denholm, two months later. But the new chairwoman hasn’t seemed to accomplish much in terms of keeping Musk’s social media activities in check.

After the upcoming shakeup, the remaining seven board members will include Musk himself, Denholm, two new directors who joined along with Deholm—Oracle co-founder Larry Ellison and Walgreen veteran Kathleen Wilson-Thompson, Musk’s brother and restaurateur Kimbal Musk, James Murdoch and Ira Ehrenpreis, who is also a SpaceX investor.

Tesla’s board is one of the highest compensated among publicly traded companies, according to The New York Times. Per the regulatory filing last week, Tesla’s 10 board members, not including Musk himself, received stock options valued at more than $60 million in 2018.

Tesla’s Board Is Becoming More Independent—4 Directors at a Time

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SpaceX CEO Elon Musk gives students in Flint, Mich computers

Flint – Students and teachers at Doyle-Rider Elementary in Flint, Michigan got a surprise on Friday — a visit from Tesla and SpaceX CEO Elon Musk.

Students and teachers at Doyle-Rider Elementary in Flint, Michigan got a surprise on Friday — a visit from Tesla and SpaceX CEO Elon Musk.

Flint – According to WSMH-TV, Elon Musk was the surprise visitor at an assembly for a group of sixth- and seventh-graders from seven elementary schools in the Flint Community Schools District.

Students attending the assembly same from the following schools: Holmes STEM Academy; Neithercut Elementary; Durant-Tuuri; Mott Elementary; Eisenhower Elementary; Potter Elementary; Freeman Elementary; and Pierce Elementary.

Flint Mayor Karen Weaver and State Representative Sheldon Neeley were also present for the assembly which was the latest in Musk’s commitment to helping the citizens of Flint. He announced in December last year he would provide $423,000 to pay for Chromebook laptops for all seventh- and eighth-graders in the school district.

The donation was made through the Elon Musk Foundation. As The Guardian writes, it is a rather secretive website that describes itself as follows: “Musk Foundation. Grants are made in support of Renewable energy research and advocacy; Human space exploration research and advocacy; Pediatric research; Science and engineering education.” Musk founded the Musk Foundation in 2002.

Musk also made use of his foundation in October last year when he donated the money to pay for new water stations and water filtration for the entire Flint Community Schools district. There are more than 4,500 K-12 students in the school district.

Musk talks about technology and experimentation

The students were very surprised to meet the technology and science mogul. Musk started things out by showing the students a video showcasing Space X.

Then he talked to the students about his love of science, especially with experimenting and building things when he was a kid. Musk wanted to inspire students to shot for the stars in their ambitions and not be afraid of failures – but “to try what they want to experiment with,” according to NBC25 News. Musk even talked to the students about his failures, showing them a video of his rocket “bloopers.”

The big surprise came at the end of the assembly when Musk, along with Flint School Superintendent Derrick Lopez, announced that every student present at the assembly would receive a laptop. Musk also announced that two student representatives from each school will be flown out to visit the SpaceX factory in California, reports the Detroit Free Press.

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