Elon Musk defends the takeover of Solarcity in court. The allegations that the CEO had to listen to made him repeatedly personal.
A group of Tesla shareholders alleged that the acquisition of Solarcity that Elon Musk 2016 was not in the spirit of Tesla, but only corresponded to his private interests. In this context, it is important to know that Solarcity was founded in 2006 on a proposal by Musk. The company is run by the brothers Lyndon and Peter Rive, Musk’s cousins. Musk himself invested part of his assets in the then young company even before the takeover.
On Monday, Musk defended Tesla’s decision to buy the solar panel company in a Delaware court, arguing that it did so not just for the two companies, but for the company as well Future of the world climate was a necessary decision.
In the process, he resisted questions from an attorney who represented a group of shareholders who claimed that Musk was acting solely in his own interests and not those of Tesla investors when he got Tesla to sell Solarcity for 2.6 Billions of dollars to buy. As the Washington Post reported, Musk got personal again. “I think you are a bad person,” he said to the plaintiffs’ attorney, Randall Baron, when he asked about mistakes in the takeover.
Musk argued that the controversial deal would ultimately pay off for shareholders as much as it did for the environment. The reason for this is Tesla’s focus on the solar energy business in the coming quarters.
The process was originally supposed to have been completed long ago, but has been postponed for more than a year due to the pandemic. It is believed that the process will drag on for another two weeks. Should the judge then decide that Musk used his position at Tesla to push through the deal against the interests of the shareholders, he could face a repayment of up to two billion dollars of his own money to Tesla. From a financial point of view, that would be an easy undertaking for the billionaire, since his wealth is almost exclusively tied up in Tesla shares anyway. From a personal point of view, however, a judicial defeat would be harsh punishment for the businessman.
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