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Tesla Inc. CEO Elon Musk, right, leaves court for the SolarCity lawsuit in Wilmington, Delaware, U.S., Monday, July 12, 2021.
Samuel Corum | Bloomberg | Getty Images
WILMINGTON, Del. – Tesla CEO Elon Musk returns to court for a second day and will likely be asked about SolarCity’s financial health in 2016 before Tesla acquires it for $ 2.6 billion.
The court will resume at 9:15 a.m.ET.
Shareholders sued Musk, alleging that Tesla’s acquisition of the solar power installer amounted to a bailout and a deal struck by Musk, who was concurrently chairman of the board of the two companies. Shareholders also allege that Musk controlled Tesla’s board of directors, even though he appeared to recuse himself from some negotiations regarding SolarCity.
A typically confrontational Musk didn’t answer lawyers’ questions in a single day in Delaware Court of Chancellery on Monday during his roughly six hours on the stand. The trial is expected to last two weeks.
Depending on how long it takes for the Tesla CEO to complete his testimony on Tuesday, his brother and fellow Tesla board member Kimbal Musk could appear in court on Tuesday afternoon.
If Elon Musk loses the case, he could have to pay more than $ 2 billion. In this case, known as a shareholder derivative action, the lawsuit is filed by investors on behalf of a company rather than by individuals or funds. If the plaintiffs win, the profits can go to Tesla and not to the stakeholders who brought the lawsuit.
Musk repeatedly denied on Monday that he pressured the board of directors to complete the deal. He added that SolarCity would have been able to raise funds on its own and that the deal did not amount to a bailout. Musk said the merger allowed Tesla to combine its battery business with Solar City’s solar power generation.
The court also saw a confrontational Musk this week, with growing tensions between CEO and plaintiffs attorney Randy Baron. Baron showed snippets of Musk’s 2019 deposition, in which Musk repeatedly called the lawsuit a waste of time and said Baron was a “shameful person.”
Baron, discussing Musk’s conduct, asked if he was “drifting” in his testimony for any reason and said the conduct was “not in Tesla’s best interests or for the purpose of achieve something”.
“I think you’re a bad human being,” Musk retorted. He said Baron was “framed by criminals, then continued to be framed by criminals”.
“That’s why I don’t respect you,” Musk said. “I have great respect for the court, but not for you, sir.
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