Benzinga - by Anan Ashraf, Benzinga Editor.
Tesla CEO Elon Musk credited German carmaker Daimler AG with saving the EV giant in the aftermath of the 2008 financial crisis when it was on the brink of bankruptcy.
What Happened: Musk revealed on X, formerly Twitter, that Mercedes-Benz parent Daimler invested $50 million into Tesla in May 2009, providing crucial funding during the financial crisis.
“Daimler's $50M investment in May 2009 was the crucial money that saved Tesla,” Musk stated. “We would have bounced payroll one month later.”
This clarification follows Musk’s recent criticism of rival EV maker Lucid Group, alleging its reliance on Saudi Arabia’s Public Investment Fund (PIF) to survive. The PIF has injected about $5.4 billion into Lucid since 2018, making it the majority owner.
In response to a user’s query on X, Musk clarified that while Daimler played a crucial role in Tesla’s survival, the Saudis did not contribute to saving the company.
No, Daimler's $50M investment in May 2009 was the crucial money that saved Tesla. We would have bounced payroll one month later.— Elon Musk (@elonmusk) February 22, 2024
Old Bones? Musk has previously criticized Lucid’s financial performance, warning of potential bankruptcy in June 2022 due to substantial spending, alongside Rivian.
Addressing Peter Rawlinson‘s background, Musk disputed a user’s claim of the Lucid chief previously being Tesla Model S’s chief engineer. Musk asserted that he held the position and alleged that Rawlinson joined Tesla after the Model S prototype was developed and left before production started.
Musk also criticized Rawlinson’s compensation, describing it as disproportionate to Lucid’s shareholder value. Despite a 0.5% increase in Lucid’s shares on Wednesday, the stock has plummeted nearly 63% over the past year.
Choose your fighter pic.twitter.com/4EYYtfHTlG— Smooth Feeder (@SmoothFeeder) February 22, 2024
Why It Matters: Earlier this month, Musk voiced his opposition to Rawlinson’s $6 million cash bonus approved by the Lucid board. This criticism comes amidst Musk’s own legal battle over a Delaware court’s rejection of his $56 billion pay package.
According to the Equilar CEO Compensation Survey, Rawlinson’s total compensation in 2022 reached $379 million, significantly surpassing that of General Motors Co CEO Mary Barra, whose total compensation was approximately $34 million.
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Read More: What Dented Rivian’s Q4 Margins? CFO Reveals Huge Dip In Deliveries For Prime Customer
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