As he finished his first day of testimony in defense of Tesla’s 2016 acquisition of SolarCity on Monday, Elon Musk argued in court that the firm’s board of directors control the company, but also warned the electric vehicle maker would ‘die’ if he wasn’t the CEO.
Elon Musk allegedly forced Tesla’s board of directors to deplete the company’s assets with the $2.6 billion all-stock acquisition for SolarCity, according to the complaint brought by union pension funds and asset managers.
Elon Musk had a 22 percent interest in Tesla at the time of the agreement with SolarCity. This indicates he didn’t own a majority interest in the electric vehicle firm. Some Tesla shareholders claimed that the SolarCity transaction was intended to save the firm, in which Musk had a stake.
In this case, Tesla stockholders argued that the money spent in SolarCity had to be repaid. Elon Musk has been accused by Tesla shareholders of controlling the EV maker’s board of directors with transaction talks. They said Musk persuaded Tesla’s board of directors to purchase SolarCity despite the fact that it was a weak deal for the firm.
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In Wilmington, Delaware, a two-week trial began in this case. Elon Musk was required to appear in court as part of the lawsuit.
Musk stated before the judge that he has worked very hard not to be Tesla’s CEO, ‘but I have to or frankly, Tesla is going to die.’ Other Tesla board members and individuals engaged in the Tesla-SolarCity agreement will testify on Tuesday. Musk too will return to the witness stand.
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