Tesla heads to court to defend Musk’s pay – and Elon Musk’s privacy
In a filing late Friday morning, Tesla filed a motion to intervene in Musk’s case and asked to intervene as an amicus in the court’s decision to strike down a provision of the California law.
A hearing date has not been set for Tesla’s motion to intervene. The company may or may not be able to get through it as it would have to argue that the law wasn’t passed through the normal legislative process—not an option it’s allowed.
The move comes after Musk’s attorney, Joshua Dratel, filed a motion to strike the provision that was part of the legislation and argued that it was unconstitutional.
The motion was filed Friday morning in response to Tesla’s motion to intervene in Musk’s lawsuit.
The California law was designed to allow the state to take more control over Tesla’s profits and business operations. That way, California could require Tesla to sell certain products, put limits on sales to customers in California, and use its power to sue the company for breaching its terms.
The law was designed to ensure that Tesla could not get away with underpayment for the vehicles it sells, and that they would not be sold in the state.
A Tesla spokesperson told CNBC Friday night that the company would not comment on the case unless it is set for a hearing, which was not scheduled. The motion is listed on the court’s electronic docket under case number 15-CV-1034, and is available for viewing. Tesla’s filing with the court notes that the company would be bringing the company’s legal arguments in the case, which include an argument against the law’s constitutionality.
The Tesla legal filing notes that the company’s arguments would largely be identical to arguments made in its lawsuit against Musk’s compensation. When it filed its case, Tesla made the argument that the law violates the First Amendment, as well as a number of other state and federal laws.
Musk settled the lawsuit last year for a $20 million buyout, agreeing to divest all his ownership interest in Tesla for about $2 billion—$10 million at a time.
The settlement required Musk to immediately close all of his assets and be fully out of the company, among other terms. Now, Tesla wants to take those legal fights into court.
Musk’s legal team has filed its own motions and arguments that are separate from