Musk to testify in defence of Tesla's $2.6 bln deal for SolarCity

Tesla shareholders accused Elon Musk for dominating the Ev maker's board with deal discussions.
By : HT Auto Desk
| Updated on: 12 Jul 2021, 06:06 PM
Musk will testify defending the deal in a two-week trial in Wilmington in Delaware before Vice Chancellor Joseph Slights. (AP)
Musk will testify defending the deal in a two-week trial in Wilmington in Delaware before Vice Chancellor Joseph Slights. (AP)
Musk will testify defending the deal in a two-week trial in Wilmington in Delaware before Vice Chancellor Joseph Slights. (AP)
Musk will testify defending the deal in a two-week trial in Wilmington in Delaware before Vice Chancellor Joseph Slights.

Tesla CEO Elon Musk to testify in defence of the electric vehicle manufacturer's 2016 acquisition of SolarCity. This comes in the wake of a lawsuit filed by the shareholders of Tesla Inc seeking to recoup the $2.6 billion that the EV company spent on the SolarCity deal.

Also Read: Check out NYPD's latest crime-fighting wheels, a Tesla Model 3 EV. Watch here

Similar Cars

Find More Cars
Hyundai Kona Electric (HT Auto photo)
Hyundai Kona Electric
cc | Electric | Automatic
₹23.79 - 23.98 Lakhs**Ex-showroom price
Bmw 2 Series Gran Coupe (HT Auto photo)
Bmw 2 Series Gran Coupe
1998 cc | Petrol | Automatic (Torque Converter) | 14.82 kmpl
₹37.9 - 42.3 Lakhs**Ex-showroom price
Bmw 6 Series Gt (HT Auto photo)
Bmw 6 Series Gt
1998 cc | Petrol | Automatic (Torque Converter) | 13.32 kmpl
₹67.9 - 79.2 Lakhs**Ex-showroom price

The lawsuit was filed by union pension funds and asset managers. They alleged that Musk influenced Tesla's board to buy SolarCity despite it being a wreak deal for the company.

Musk will testify defending the deal in a two-week trial in Wilmington in Delaware before Vice Chancellor Joseph Slights, said Reuters. The trial will decide whether the SolarCity deal was justified to Tesla shareholders or not.

Interestingly, the lawsuit pointed finger at Tesla CEO because he owned a 22% stake in SolarCity that was founded by his cousins. The shareholders appealed to the court to order Elon Musk to repay the amount to Tesla, which was spent to purchase SolarCity. They also accused Musk of dominating deal discussions and pushing the company to pay more to SolarCity. He had a 22% stake in Tesla during the deal, which was nowhere near a controlling stake in the company.

The celebrity CEO on the other hand has argued that the Tesla-SolarCity deal was fair for the shareholders. He also said that the deal was negotiated by the Tesla board without any influence from him. During the trial, the judge is expected to look for evidence if Musk had strong-armed the Tesla board members or not.

Other Tesla directors settled the allegations from this same lawsuit in 2020 for an amount of $60 million. They paid this by insurance, without admitting fault.

First Published Date: 12 Jul 2021, 06:06 PM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city