I agree that they probably just opened themselves up to other legitimate lawsuits. Oops.
I'm honestly not sure which I expect to be the case. :(
It sounds like Tesla is saying she was promoted, even over others with higher qualifications, precisely because of her contributions.
In jobs that I've had over the years, I've also corrected mistakes made by more senior colleagues and made suggestions that they have not made. But I had no expectation to suddenly be paid as much or more than them.
Why is it bad to admit that? She's fired now anyways.
Because it's fuel for lawsuits by other people, as it admits that Tesla's hiring and promotion has been based on special treatment and not qualification, and implies (though does not explicitly state) that that was gender-based.
It's also bad because it tells investors that Tesla's hiring is based on special treatment and not ability to do the job. (And, on top of that, that Tesla's management is irresponsible enough to admit that publicly.)
Screwed either way.