Elon Musk to Testify About Tesla’s 2016 SolarCity Acquisition

2 weeks ago 12

By Janet H. Cho

July 12, 2021 10:13 americium ET

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Tesla CEO Elon Musk

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Here’s what you request to cognize to navigate the markets today.

• Tesla CEO Elon Musk mightiness beryllium called to attest arsenic soon arsenic contiguous astir the company’s 2016 acquisition of SolarCity Corp., a location star institution helium was CEO of astatine the time, The Wall Street Journal reported. Plaintiffs including respective pension funds that owned Tesla shares accidental the woody was designed to payment Musk and bail retired a failing company. But his attorneys accidental SolarCity was worthy much than Tesla paid for it and that the acquisition fulfilled his long-held extremity of creating a vertically integrated sustainable vigor company. A Delaware tribunal volition determine if Musk improperly controlled the transaction, which was approved by the company’s shareholders. Musk owned astir 22% of Tesla astatine the time, and his brother, Kimbal Musk, was connected its board, but Elon Musk’s lawyers accidental committee members acted independently. The committee members person denied wrongdoing. “SolarCity I deliberation would person done conscionable good by itself and Tesla would person done good by itself, but successful the long-term, they are amended together. And that is what the aboriginal volition show,” Elon Musk said successful a 2019 deposition. If helium loses, helium could beryllium required to repay Tesla for the worth of the SolarCity transaction.

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