Tesla shareholders call on judge to make Musk repay $13bn for SolarCity deal
Tesla shareholders have called on a judge to make Tesla’s chief executive Elon Musk repay $13bn for the 2016 acquisition of solar panel company SolarCity.
The claimants argued that Musk, SolarCity’s 22 per cent shareholder, strong-armed Tesla’s board to buy the cash-stripped company founded by his cousins Peter and Lyndon Rive, Reuters reported.
As a result of its ties with the company’s founders, Musk is alleged to have acted a controlling shareholder, with investors saying he made the acquisition out to be a bailout.
“This case has always been about whether the acquisition of SolarCity was a rescue from financial distress, a bailout, orchestrated by Elon Musk,” said the investor’s lawyer Randy Baron.
Beginning in July, the trial has seen Musk defend his actions on the stand, stating he did not partake in price negotiations letting the board make a deal, which was valued at 2.6bn.
During today’s closing arguments, the serial entrepreneur’s lawyers argued that returning the stock acquired from the deal would be “preposterous”, as it discarded Tesla’s success over the last five years.
The company’s share price went down today 0.64 per cent, reaching $1,042.94.