They say Tesla s money was wasted on the takeover, which they claim was essentially a bailout as Solar City was running out of money.
And Musk s 22 per cent stake in Tesla, they allege, makes him akin to a controlling shareholder – a role that would give him the ability to have more influence than other investors over the company s decisions.
A judge will use the two-week trial to decide if the Solar City deal was fair to Tesla shareholders.
If the judge rules against Musk, who also runs the rocket company Space X, he could be asked to repay to Tesla what it spent on the deal. It could be one of the largest-ever damages payouts.
Musk defends timing of Tesla s $2.6 billion deal for SolarCity
By Tom Hals and Sierra Jackson
Reuters
WILMINGTON, Del. (Reuters) -Elon Musk told a judge on Tuesday Tesla Inc had to buy SolarCity in 2016 because the failing solar panel company was essential to the electric vehicle maker s long-term goal of accelerating the transition to sustainable energy.
The celebrity chief executive completed about eight hours of testimony over two days to defend himself against a lawsuit brought by union pension funds and asset managers who allege he strong-armed Tesla directors into buying the cash-strapped SolarCity for $2.6 billion.
Musk at the time owned a 22% stake in both Tesla and SolarCity, which was founded by his cousins. The Tesla shareholders want Musk to be ordered to return the value of the deal to Tesla.
Wednesday, 14 Jul 2021 07:58 AM MYT
Tesla CEO Elon Musk departs after taking the stand to defend Tesla Inc s 2016 deal for SolarCity in a case before the Delaware Court of Chancery in Wilmington, Delaware July 12, 2021. ― Reuters pic
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
WILMINGTON, July 14 ― Elon Musk told a judge yesterday Tesla Inc had to buy SolarCity in 2016 because the failing solar panel company was essential to the electric vehicle maker s long-term goal of accelerating the transition to sustainable energy.
The celebrity chief executive completed about eight hours of testimony over two days to defend himself against a lawsuit brought by union pension funds and asset managers who allege he strong-armed Tesla directors into buying the cash-strapped SolarCity for US$2.6 billion (RM10.9 billion).
Musk defends timing of Tesla s $2 6 billion deal for SolarCity oann.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from oann.com Daily Mail and Mail on Sunday newspapers.
Print this article
A sick attorney briefly interrupted a trial involving Tesla CEO Elon Musk, who a group of shareholders alleges improperly participated in Tesla s acquisition of energy system company SolarCity.
The unidentified man, reportedly part of the plaintiffs legal team, vomited as he sat in the juror s box during Musk s testimony on Tuesday.
The man left the courtroom on his own and denied on-site medical aid, and the trial resumed about an hour later, the
News Journalreported.
Musk took to the witness stand in a Delaware court for the second day in a row on Tuesday, keeping up his battle with opposing counsel Randall Baron, whom Musk called a bad human being on Monday.