Elon Musk is due to testify against Tesla SolarCity | Traffic Companies News

On Monday, Elon Musk took part in defending Tesla’s $ 2.5bn acquisition from SolarCity in 2016 against a shared lawsuit that the deal said sparked a heated debate.

In a bid for SolarCity’s 2016 Tesla Inc. company, Elon Musk hailed the business as a “one-size-fits-all” approach – a purchase that would include a major manufacturer of electric vehicles and solar manufacturers could repurchase EVs.

It was not really so.

On Monday at the Delaware Court of Chancery, Tesla CEO testified in a $ 2.5bn lawsuit alleging that Tesla’s purchases were controversial, ignoring SolarCity’s major weaknesses and failing to deliver on the promises Musk had promised.

Asked about the oath, Musk plans to protect the purchase as a legitimate item.

At the time of buying all the shares, Musk was the largest in SolarCity and its chairman. Seven stock lawsuits, linked to one, allege Tesla executives have violated their religious obligations by obeying Musk’s demands and agreeing to buy a rival company. As the plaintiffs call a clear dispute, SolarCity was founded by Musk and his two siblings, Lyndon and Peter Rive.

In August, a judge approved a $ 60m dismissal order against all Tesla board executives except Musk without admitting any wrongdoing. This left Musk, who refused to settle down, the only opponent left. The trial, which began on Monday, was adjourned in March last year but was postponed due to the COVID-19 epidemic.

Daniel Ives, a researcher at Wedbush Securities, called getting a “black eye” from Musk and Tesla, mainly because SolarCity has failed to make a profit.

“They were actually putting good money after bad,” Ives said. “Of all the good and the incomparable things that Musk has achieved, this is one of the few things.”

Many advertisers, Ives said, have no interest in the solar company.

“I think Musk and Tesla underestimated the complexity and complexity that the business brings,” he said.

That said, Ives said he thinks Tesla’s powerful business could “do a little better”.

Tesla, which has disrupted its media relations department, did not respond to a press message Friday. In its 2020 annual report, the company also stated that the charges were frivolous and that Tesla would defend itself vigorously.

“We cannot estimate any losses or losses, if any, in relation to this,” the company report said.

Tesla’s electricity and storage business generated $ 1.9bn in revenue last year – 24% more than it did last year. Most of that money comes from the sale of battery storage. Tesla does not say whether the business made a profit, but also has debts and payments.

The lawsuit filed by the police said Musk had pushed for a decision to acquire SolarCity despite opposition.

Musk has a history of cracking down on government agencies and lawsuits. He was forced to pay a $ 20m fine to the Securities and Exchange Commission for stating on Twitter that he had the money to take the company privately when he did not. But he won a lawsuit filed by another British national who was involved in rescuing a Thai football team trapped in a flooded cave. Musk called the man a “pedo guy” on Twitter.

Even after the lawsuit was settled out of court for Musk to pay the full amount for the entire SolarCity deal, $ 2.5bn does not hurt the world’s third richest man. Forbes magazine Musk is worth about $ 163bn.

Ives added that while such payments do not affect Musk’s assets, they do damage his reputation when it comes to purchasing.

Musk is prosecuting after others dismissed “because that’s what Musk does”, Ives said. “I think Elon believes this was good and still works.”