{"id":296921,"date":"2021-07-12T19:17:49","date_gmt":"2021-07-12T16:17:49","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/elon-musk-defends-teslas-2-6b-solarcity-purchase-in-court\/"},"modified":"2021-07-12T19:17:49","modified_gmt":"2021-07-12T16:17:49","slug":"elon-musk-defends-teslas-2-6b-solarcity-purchase-in-court","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/elon-musk-defends-teslas-2-6b-solarcity-purchase-in-court\/","title":{"rendered":"#Elon Musk defends Tesla’s $2.6B SolarCity purchase in court"},"content":{"rendered":"

“#Elon Musk defends Tesla’s $2.6B SolarCity purchase in court<\/strong>”<\/p>\n

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Tesla CEO Elon Musk took the stand on Monday to defend his company\u2019s 2016 purchase of ailing solar panel maker SolarCity \u2014 and head off a possible judgement that could force him to personally shell out more than $2 billion. <\/p>\n

Tesla shareholders are suing Musk in Delaware Chancery Court, claiming that the superstar CEO pressured the company\u2019s board into effectively bailing out SolarCity, a company founded by Musk\u2019s cousins in which the South African-born billionaire held a 22-percent stake.\u00a0<\/p>\n

Testifying in Wilmington on Monday morning, Musk denied that the $2.6 billion deal was crooked. <\/p>\n

\u201cSince it was a stock-for-stock transaction and I owned almost exactly the same percentage of both there was no financial gain,\u201d he said.<\/p>\n

Musk\u2019s testimony kicked off a trial that is expected to last about two weeks.\u00a0<\/p>\n

If Vice Chancellor Joseph Slights decides that the SolarCity deal was unfair to the plaintiffs \u2014 which include union pension funds and asset managers that held Tesla shares \u2014 he could order Musk to pay damages.\u00a0<\/p>\n

The suing shareholders want Musk to repay the entire $2.6 billion Tesla spent to buy SolarCity, which would be one of the largest judgments ever against an individual.\u00a0Slights could also award a smaller amount. <\/p>\n

To put the judgement into perspective, Musk is currently pegged by Bloomberg as the world\u2019s second-richest person with a net worth of $180 billion.<\/p>\n

\"SolarCity
Tesla paid $2.6 billion for ailing solar panel company SolarCity.<\/figcaption>
Moment Editorial\/Getty Images<\/span><\/figcaption><\/figure>\n

During his testimony, Musk \u2014 who had a 22-percent stake in Tesla at the time of the SolarCity deal \u2014 denied that he improperly pressured board members to app<\/a>rove the purchase, framing entering the solar business as a sensible expansion as part of a strategy he called the \u201cMaster Plan, Part Deux.\u201d\u00a0<\/p>\n

He pointed to the fact that he does not control the appointment or compensation of Tesla board members as evidence that he could not have pressured the board into approving the purchase. <\/p>\n

\"Tesla
At the time, Musk held 22 percent stakes in both SolarCity and Tesla. <\/figcaption>
Fairfax Media<\/a> via Getty Images<\/span><\/figcaption><\/figure>\n

\u201cThey provide good advice and are rigorous in acting on behalf of shareholders,\u201d Musk said of Tesla\u2019s board members in response to a question by his attorney, Evan Chesler.<\/p>\n

Later on, the attorney for the plaintiffs, Randall Baron, warned Musk during cross-examination that the case was \u201cgoing to be a grind.\u201d\u00a0<\/p>\n

Musk\u00a0grimaced, poked at the six-inch thick binder exhibit and replied \u201cI can tell by the binder.\u201d<\/p>\n

\"Elon
\u201cSince it was a stock-for-stock transaction and I owned almost exactly the same percentage of both there was no financial gain,\u201d said Musk. <\/figcaption>
REUTERS<\/span><\/figcaption><\/figure>\n
\"Leonard
Musk testified in Wilmington, Delaware on Monday morning. <\/figcaption>
AP<\/span><\/figcaption><\/figure>\n

A group of Tesla directors excluding Musk settled allegations from the same lawsuit<\/a> last year for $60 million, paid by insurance, without admitting fault.<\/p>\n

With Post Wires<\/em>\n <\/div>\n

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Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

“#Elon Musk defends Tesla’s $2.6B SolarCity purchase in court” Tesla CEO Elon Musk took the stand on Monday to defend his company\u2019s 2016 purchase of ailing solar panel maker SolarCity \u2014 and head off a possible judgement that could force him to personally shell out more than $2 billion. Tesla shareholders are suing Musk in…<\/p>\n","protected":false},"author":1,"featured_media":296922,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/07\/tesla-solar-58.jpg?quality=90&strip=all&w=1200","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[111664,70287,39394,70446,81125,36402],"class_list":["post-296921","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-7-12-21","tag-delaware","tag-elon-musk","tag-lawsuits","tag-solar-power","tag-tesla"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/296921","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=296921"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/296921\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/296922"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=296921"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=296921"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=296921"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}