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  • Ryan Wittler

Elon Musk Took the Stand in Tesla's SolarCity Lawsuit

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On Monday, Tesla CEO Elon Musk testified in defense of the company’s 2016 $2.6 billion acquisition of SolarCity, a company founded by Musk and two of his cousins. How we got here: Tesla shareholders are alleging that Musk, who at the time of the acquisition was SolarCity’s chairman and largest shareholder, and other Tesla directors breached their fiduciary duties by giving in to Musk’s “wishes” to acquire the struggling startup. Particularly, the shareholders allege that the SolarCity acquisition amounted to little more than a corporate bailout that enriched Musk and his cousins more than it did Tesla, as the “profits” Musk promised from the deal never came to fruition. If the shareholders prevail, Musk may have to pay over $2 billion from his personal wealth (which currently sits at $169 billion, so word's out on whether he really gives a s**t).

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