SolarCity suit demands Musk pay back $9.4 billion

Elon Musk

According to Tesla investors filing in a Delaware court, the group believes Elon Musk should repay Tesla $9.4 billion over the SolarCity deal. The court filing argues that Musk received benefits for pushing the acquisition of the solar company back in 2016.

Musk received 2.4 million Tesla shares in the acquisition, which has grown to 12 million shares due to stock splits. That would put the estimated value of around $9.4 billion today. 85% of Tesla shareholders approved the deal.

The lawsuit alleges that Musk did not recuse himself from the negotiations. Nor did he disclose that SolarCity was nearly out of cash, according to Reuters.

Musk fired back in his post-trial brief. He noted that SolarCity was the culmination of a decade-long plant to create a vertically integrated clean energy company.

However, one of the essential questions that could determine the case is if Musk is a controlling stakeholder in Tesla, despite having a minority stake in the company. The Judge has not ruled on this crucial question as of yet.

Post-trial arguments are due in January 2022, and a ruling is due by mid-2022 if the schedule maintains.

About Scott Nordlund 284 Articles
Originally from the West Coast, Scott is an avid writer & EV enthusiast now living in Ottawa. He holds a MA in Political Science and once played professional football in the German Football League. Email scott@driveteslacanada.ca