Tesla CEO Elon Musk has been sued by Tesla shareholders for his 2016 acquisition of U.S. solar power company SolarCity, accusing Elon Musk of coercing Tesla’s board of directors to strike a deal. In response, relevant shareholders demanded that Elon Musk repay them US$13 billion (about HK$101.2 billion).
Shareholder lawyer Randy Baron said that Tesla’s acquisition of SolarCity was an act to get SolarCity out of financial difficulties. Elon Musk, as the largest shareholder of SolarCity, owns 22% of the shares, and the founder of SolarCity is Elon Musk’s cousin, so he believes that the The acquisition project is Elon Musk’s carefully planned “rescue plan”; the acquisition was an all-stock transaction, valued at $2.6 billion at the time, and Tesla’s stock price rose sharply after the period. Some Tesla shareholders have urged the court to rule that Elon Musk must pay Tesla shareholders repay money they made from the deal.
Elon Musk argued that the transaction was part of a long-term plan, and the lawyers also denied that the acquisition was to help SolarCity, arguing that SolarCity was developing well at the time, saying that SolarCity was still far from bankruptcy, and its financial situation was similar to many high-growth technologies. company. The judge expects that the relevant referee will have a result in about three months.
source:REUTERS
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