Tesla shareholders are suing Elon Musk for 13 billion
SolarCity, a company producing and installing batteries and solar panels, has always been in difficulty and in need of help, to show how the myth of alternative energy is, in fact, almost always a myth. Elon Musk had invested heavily in the company, and at one point it required resources and a market. Elon Musk had a brilliant idea, so to speak: to have Tesla buy it in 2016 for 5 billion. Too bad that Tesla is not a company owned by him, but listed on the stock exchange and with institutional investors who did not take it well, also because Tesla almost forced the Tesla Board of Directors to buy the company.
We have now come to a large shareholder lawsuit , including pension funds, against Elon Musk for this risky takeover. So, as an attorney for this pate puts it: "The judge has to consider whether the SolarCity acquisition was a bailout from financial hardship, a bailout orchestrated by Elon Musk," said Randy Baron, a shareholders attorney.
The lawsuit of union pension funds and wealth managers claims that Musk pushed Tesla's board of directors to approve the SolarCity deal. At the time, Musk was the largest shareholder in the cash-strapped solar energy company.
However, Musk said the SolarCity deal was part of a ten-year master plan to create a vertically integrated company to transform power generation and consumption with SolarCity's solar panels and Tesla's electric vehicles and batteries. Basically Musk claims that he had a plan that started from photovoltaic generation to batteries to cars. nice, but a bit complicated.
Shareholder attorney Lee Rudy has urged Deputy Chancellor Joseph Slights of the Delaware Court of Chancery to order Tesla's CEO to return the investments in the acquired company which, between revaluations and several tranches of money, pay in several years. Currently, all of these figures would come to around $ 13 billion, a hefty sum Musk risks having to pay to shareholders.
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The article Tesla shareholders are suing Elon Musk for 13 billion comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/gli-azionisti-di-tesla-fanno-causa-a-elon-musk-per-13-miliardi/ on Wed, 19 Jan 2022 12:27:31 +0000.