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Dec 03, 2024
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Happy Tuesday! A Delaware judge has rejected Elon Musk’s request that the court reinstate a gigantic pay package from Tesla. Intel CEO Pat Gelsinger abruptly stepped down. Fidelity Investments marked up its stake in X by 32%.
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A Delaware judge has rejected Elon Musk’s request that the court reinstate a gigantic pay package from Tesla, the largest executive compensation award in corporate history. The judge, Chancellor Kathaleen McCormick, denied a challenge from Musk and the Tesla board of directors to her January ruling in favor of a Tesla shareholder, who had argued that Musk’s pay—then valued at $46 billion—was unfair to the electric vehicle maker’s investors. Since then, that pay package has surged to more than $100 billion in value due to an increase in the value of Tesla’s stock. After her January ruling, Tesla put the pay package to another vote by shareholders, who approved it. Musk and his legal team had hoped that that would help them persuade the judge to reverse her decision. But instead McCormick on Monday stuck by her January ruling, saying that the Musk legal team’s “unprecedented theories go against multiple strains of settled law.” Musk can appeal the latest ruling. Correction: An earlier version of this brief misstated the month of the Delaware court’s January ruling on Musk’s pay package.
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Pat Gelsinger stepped down abruptly as CEO of Intel, less than four years after taking the helm of the struggling chip maker, signaling the board has lost patience with his efforts to turn around the company. In a short statement on Monday morning, Intel said Gelsinger had “retired from the company after a distinguished 40-plus-year career and stepped down from the board of directors, effective Dec. 1.” Intel named chief financial officer David Zinsner and veteran executive Michelle Johnston Holthaus, as interim co-CEOs while it conducts a search for a new CEO. Intel has been in decline for several years, as the once iconic chip maker has fallen behind in key markets such as mobile and more recently AI chips, an area now dominated by Nvidia. In a statement, Intel chair Frank Yeary said that the board knows
“we have much more work to do at the company and are committed to restoring investor confidence.” Intel stock, which has fallen by half this year, rose slightly in early trading on Monday.
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Fidelity Investments marked up its equity stake in Elon Musk’s X by 32% in October, according to a recent investor filing. The markup follows several markdowns over the past couple of years, since the 2022 buyout of X, formerly known as Twitter. Even accounting for the latest markup, Fidelity’s valuation of X is down 72% from October 2022, when Fidelity helped finance Elon Musk’s $44 billion buyout of the site. The increased valuation could reflect the higher stock prices of Musk’s companies since Donald Trump’s election, given Musk’s close relationship with the incoming president. The election also coincided with users defecting from X in favor of rival sites like Threads and Bluesky.
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WeDoctor, a Chinese online healthcare company backed by tech giant Tencent, plans to submit an application this month for an initial public offering in Hong Kong that could raise as much as $500 million, the South China Morning Post reported. The company, whose investors include Chinese venture capital firm HongShan, hopes to complete its Hong Kong IPO by June next year, according to the report. WeDoctor, based in Hangzhou, previously filed for a Hong Kong IPO in 2021, but the listing never happened because the Chinese government’s 2021 regulatory crackdown on the tech sector and new rules for overseas listings forced many companies to scrap their IPO plans at the time. WeDoctor’s revived IPO plan comes at a time when Hong Kong’s IPO market is recently showing some signs of recovery after the total value of
listings in the first half of this year fell to lowest levels in two decades. Last month, Chinese express delivery firm SF Holding’s Hong Kong IPO raised about $750 million. In September, Chinese home appliance maker Midea raised nearly $4 billion in its Hong Kong listing.
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Super Micro, a maker of servers for data centers, on Monday said an independent investigation into its accounting practices found “no evidence of misconduct.” Its shares surged 29% to $42. The San Jose, Calif., company’s board hired outside lawyers and accountants to perform the investigation in August, following a report by short seller Hindenburg Research that it had manipulated its finances and after Ernst & Young raised concerns about its accounting practices. The Department of Justice has opened a probe into the company, according to The Wall Street Journal. Super Micro’s stock has not recovered to its $49.12 price before EY resigned as its auditor in October.
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