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He should have cashed out a billion from Tesla and walked away from the deal.
by strangattractor 4y ago
He should have cashed out a billion from Tesla and walked away from the deal.
- detaro 4y agoThe billion dollar fee was in the case that the deal broke down for reasons outside Musks control. He made a binding offer, he couldn't just say "I changed my mind", pay the billion and walk away.
- Zigurd 4y agoThis is correct. There was never a discretionary exit from the contract. Any settlement would be a negotiated amount. In principle it could be less than $1B. But accepting anything much short of the agreed price per share would have gotten the board sued by shareholders who, understandably, wanted the full amount.