Thread by @CathieDWood

I believe the Delaware court decision, forcing #Tesla to void the March 2018 vote on Elon Musk’s performance-based pay package, is un-American, an assault on investor rights, and an insult to the Board of Directors of one of the most stunningly successful companies in US history.

I have known Robyn Denholm, Chair of Tesla’s Board, professionally for 17 years since she was named Juniper Networks CFO in 2007. Robyn was and is an independent Director on Tesla’s Compensation Committee.

Robyn is a professional of unquestionable integrity with a no-nonsense, objective, truth-wins-out philosophy. In 2014, when Tesla named her to its Board, I remember thinking that she would add a fresh pair of eyes and enhanced rigor to every part of the process she touched.

Working with @ARKInvest’s General Counsel, who analyzed the 200+ page Delaware Court decision, I have concluded that legal nuances and the controversial interpretation of them have missed the forest for the trees, spectacularly and unfairly.

Tesla’s Board incentivized @elonmusk with a Herculean task that most analysts and auto manufacturers did not believe possible. Based on our research centered on Wright’s Law, we believed that Tesla could meet the performance goals, but only with brilliant execution.

In fact, we were thrilled to learn in February 2018 that Elon Musk and the Board were aiming so high, reaching for our bull case price target in 2023 of $4,000, or ~$265 on a split adjusted basis, a ~13-fold increase from roughly $21 when I announced our price target on CNBC.

On behalf of our clients, @ARKInvest voted for Elon Musk’s compensation, as did ~80% of shareholders. Nearly five years later, a Delaware judge has overruled the Board and shareholders, the latter whom had the benefit of ample debate about the incentive plan’s probability.

Agreeing to no salary during those five years, Elon also would have received much less performance-related compensation if he had achieved less than the lofty milestones associated with our bull case. Instead, he shocked and delighted shareholders.

Thanks to Elon’s ingenuity and dogged determination, Tesla hit our bull case target price in 2021, two years earlier than we anticipated. Since then, many shareholders have shared stories with us about how our research inspired their investment in $TSLA and changed their lives.

They bought their first homes, put their children through college, and added to their retirement nest eggs, thanks to $TSLA. Tesla’s story epitomizes why people have flocked to America. The Delaware court’s decision is an embarrassment to our country’s ideals and a travesty.

If you would like to track the history of our research, please search for Tesla on . @TashaARK and @skorusARK, and @wintonARK have done amazing work to help our clients on this journey.ark-invest.com