Hearts & Minds: Elon Musk and the cour of public opinion

Even the world’s richest man and one of its most famous, cannot sway a court. Elon Musk is finding it extremely difficult to win his legal case for a record $56bn pay award. A Delaware judge has shot him down again, saying Tesla shareholders’ overwhelming approval for the deal did not override her previous rejection of the package.

It was a firm knockback for Musk, the Tesla car creator and chief executive and newly anointed Washington heavyweight, having donated $100m to the Trump campaign and been appointed co-head of an advisory board set up to excess US government spending. Musk may have all that might and brilliance - famously he showed he could dock one of his returning space rockets in spectacular fashion, but the legal system remains obdurate.

Might his own personal style of comms, have something to do with it? Judges like to be seen to be independent – telling them how to behave risks backfiring. They’re also keen to display they’re there for everyone, regardless of their position. However grand someone is, however much they threaten and promise to call on political connections, does not matter.

Musk’s approach is highly public and highly confrontational. Since losing the first round he has complained loudly about the Delaware court and has moved all his company incorporations to Nevada or Texas. Last month, Musk posted on X, which he owns: “When there are egregiously wrong legal judgments in a single state that substantially harm American citizens in all other 49 states, the Federal government should take immediate corrective action.”

A PR advisor, let alone a lawyer, might suggest he did not say that. But then Musk eschews advice. His view of comms is well-known. At Tesla, he pared down the comms team, saying: “Other companies spend money on advertising and manipulating public opinion, Tesla focuses on the product.” He did the same at X, formerly known as Twitter, shortly after buying the social network. 

After this latest decision, Musk went on the attack again. “Absolute corruption”, he wrote on X.

Tesla is appealing to the Delaware Supreme Court. Ann Lipton, a law professor at Tulane University, summed up what might occur: “The difficulty for that court is [that] Musk’s unsubtle threat to use his new political power to retaliate against Delaware makes it very difficult for that court to rule in his favour without looking like it was cowed.”

Elon, you won’t listen. Perhaps sometimes, you should.

Chris Blackhurst is one of the UK’s foremost business journalists. He was previously Editor of The Independent and City Editor of the Evening Standard.