Elon Musk defended Tesla’s acquisition of SolarCity in fierce court testimony
Aggressive Elon Musk Defended Tesla’s acquisition of SolarCity and tore up a lawyer for the acquired shareholders Prosecute On the first day of the transaction, if he loses, he may face huge compensation.
A group of Tesla shareholders, including some pension funds, claim that Musk designed $2.6 billion acquisition In 2016, he rescued another of his magnificent companies that had no funding options.
SolarCity, which installs rooftop solar panels, was founded in 2006 by Musk and his two cousins.Although Musk’s voting power in Tesla is only 22%, the shareholders who are sued claim that his personality power enables him to dominate the board and push directors into it. make a deal.
Musk, dressed in a dark suit, white shirt and dark bow tie, stood on a stand and said, SolarCity and Tesla It is a natural combination he has envisioned for many years to realize what he calls a “sustainable energy economy.”
Since this transaction is a stock-to-stock merger, and he owns a similar number of shares in the two companies, Musk said he “has no economic gain.”
Musk also insisted that he had no role in negotiating the terms of the deal, and given the power of shareholders of large institutions, he believes that it is impossible for him to control Tesla. “Fidelity, Ronaldo [Price] The capital group doesn’t care what I say,” he said.
The vast majority of Tesla shareholders approved the acquisition of SolarCity, and Musk’s Contempt Litigation for dissenting investors. The other directors settled with 60 million U.S. dollars, but he chose to fight. The trial was originally scheduled to start in March last year, but it was postponed due to the pandemic.
On Monday, in the stands of the Delaware court, Musk personally attacked the lawyer who interrogated him, the famous plaintiff lawyer Robbins Geller Rudman & Dowd’s Randall Baron. He said: “I think you are a bad guy.”
Musk added that he “respects the court very much, but not you.”
When asked, Musk stated that his contempt for Baron stems from legal issues with the lawyer’s previous company, Milberg Weiss, in which several former partners admitted to paying rebate Let shareholders join a class action lawsuit against the company. Musk said that the baron had been “guided by criminals.”
If the court rules that Musk controls Tesla and the SolarCity transaction is not in the interests of shareholders, he may be liable to pay the amount that Tesla is deemed to have overpaid.
In his question, Barron tried to force Musk to admit that he was the sole power of the company, and the board of directors had little oversight.The Baron showed clips of various interviews that Musk had accepted, including TV news programs 60 minutes And pointed out in a news article that Tesla board members are usually connected with another Musk startup SolarCity or SpaceX.
Musk rarely gave a short answer, which obviously angered Baron, but provided a glimpse of operating Tesla. Musk said that from 2017 to 2019, when Tesla worked hard to launch its Model 3 electric car, it was “the toughest three years of my life”.
He also said that he prefers engineers to managers. “Frankly, I don’t want to be the boss of anything,” Musk said, but he must become Tesla’s CEO, “otherwise the company will die.”