Elon Musk wins in Delaware lawsuit over SolarCity deal

NEWYou can now listen to Fox News articles!

A Delaware court has sided with Tesla CEO Elon Musk in a bitter legal battle over whether he acted against the best interests of other shareholders as he steered the electric car maker into a $ 2.6 billion purchase of a solar cell maker founded by two of his cousins.

The 132-page ruling, issued Wednesday by Delaware Chancery Court Vice Chancellor Joseph R. Slights, gave Musk the right to appear at the witness stand last summer for two days with often controversial testimony. Musk defended his reasons for believing it was a good idea for Tesla to buy SolarCity in November 2016, even though some analysts and some shareholders questioned the wisdom of the deal.

WASHINGTON BEFORE WAR ON ELON MUSK WHEN HE TAKES OVER TWITTER

Musk decided to fight the lawsuit, even after other directors of Tesla’s board at the time of the deal reached a $ 60 million settlement without an admission of guilt. Had the Delaware court convicted him, Musk could have been sentenced to pay $ 2 billion or more while trying to close a $ 44 billion acquisition of Twitter. Musk has promised to cover $ 21 billion of the price in the Twitter deal, which was signed earlier this week.

The lengthy shareholder lawsuit claimed that Musk broke his trust case by pursuing the SolarCity agreement despite sharp conflicts of interest. Musk was SolarCity’s largest shareholder at the time Tesla entered into the agreement.

FILE - Tesla and SpaceX CEO Elon Musk speaks at the SATELLITE Conference and Exhibition in Washington on March 9, 2020. A Delaware court on Wednesday, April 27, 2022 took Musk's side in a bitter legal battle over whether he acted against the best interests of other shareholders. interest when he steered the electric car maker into a $ 2.6 billion acquisition of a solar cell maker founded by two of his cousins.  (AP Photo / Susan Walsh, Fil)

FILE – Tesla and SpaceX CEO Elon Musk speaks at the SATELLITE Conference and Exhibition in Washington on March 9, 2020. A Delaware court on Wednesday, April 27, 2022 took Musk’s side in a bitter legal battle over whether he acted against the best interests of other shareholders. interest when he steered the electric car maker into a $ 2.6 billion acquisition of a solar cell maker founded by two of his cousins. (AP Photo / Susan Walsh, Fil)
(AP)

But Slights felt the acquisition was “completely fair,” although he admitted that “Elon was more involved in the process than a conflict-ridden trustee should be.”

ELON MUSK TAKES NOTICE AFTER BEING CALLED TO SEE LARGE TWITTER ACCOUNTS WITH ‘FAKE INFLUENCE’

While shareholders had claimed that Musk grossly distorted the value of SolarCity’s technology for Tesla, Slights disagreed. By pointing to evidence that Tesla has been able to cross-sell solar and battery storage products to consumers who also bought Tesla cars, “the preponderance of evidence suggests that the acquisition was and is synergistic,” the judge wrote. .

CLICK HERE TO GET THE FOX NEWS APP

Tesla’s share price has risen 22 times since the SolarCity acquisition was completed, generating more than $ 850 billion in shareholder wealth. It apparently did not get lost on Slights, who noted that “Tesla’s value has increased enormously after the acquisition.”

Leave a Comment

Your email address will not be published.