October 4, 2021
By Tom Hals
WILMINGTON, Del. (Reuters) – A Delaware judge is expected to order Elon Musk to repay $ 9.4 billion to Tesla Inc for benefits he received by prompting the electric vehicle maker in 2016 to buy a troubled solar company he partially owned, according to investors. Tesla in a court filing late Friday.
Investors have said that a “simple and practical” way to undo the benefits Musk improperly received from the $ 2.6 billion deal for SolarCity would be to order the CEO to return the Tesla stock he has. received for his shares in the rooftop solar company.
Musk received 2.4 million Tesla shares, which grew to 12 million due to stock splits and are currently worth around $ 9.4 billion. Investors have said that Musk, one of the richest people in the world, could also repay the value of the shares to the company.
Tesla’s stock was up 2.5% in early trading on Monday to $ 792.76 per share.
The lawsuit was brought by union pension funds and wealth managers. They state in their post-trial report that Musk did not refuse to negotiate the deal and never disclosed that SolarCity was nearly cashless.
Musk said in his brief post-trial filed late Friday that SolarCity was the culmination of a ten-year plan to create a vertically integrated clean energy company that offered rooftop solar generation combined with Tesla’s battery storage and vehicles.
He said the deal was reached at a fair price and approved by 85% of Tesla’s shareholders.
The briefs follow a two-week trial in July in Wilmington, Delaware.
The judge, Deputy Chancellor Joseph Slights, has yet to answer a key question that could determine the outcome of the case: whether Musk is a controlling shareholder despite having a minority stake in Tesla.
Slights has the post-trial arguments scheduled for January, and a sentencing will likely take place months later.
(Reporting by Tom Hals in Wilmington, Delaware, editing by Rosalba O’Brien)
[ https://newswarden.com/investors-argue-musk-should-repay-9-4-billion-to-tesla-for-solarcity-deal/ https://d26toa8f6ahusa.cloudfront.net/wp-content/uploads/2021/07/30214746/a-quiet-place-part-2-bigs-16.pdf