Tesla shareholders lawsuit over SolarCity starts to warm up

Elon Musk

The case by a group of Tesla shareholders over the SolarCity acquisition is heating up.

During a Zoom hearing on Tuesday, the shareholders asked that the judge force Musk return the Tesla (TSLA) stock he received from the 2016 deal.

At the time the shares were worth about $2.6 billion, but with today’s prices above $1,000 per share, they are now worth $13 billion, according to Reuters.

Back in July 2021, Elon Musk testified in a 10-day lawsuit over the acquisition of SolarCity. Lawyers for Musk noted that Musk recused himself of board discussions and negotiations around the purchase of the solar company.

Musk did confirm that the purchase was part of his long-term vision of transforming Tesla into an energy company.

In an interesting turn, the shareholder’s attorney asked the court to consider holding Musk in contempt due to his actions in the deposition and trial process.

Lee Rudy, the lead shareholder attorney, accused Musk of repeatedly insulting shareholder attorneys.

However, the judge disagreed, and Musk was not held in contempt.

The judge on the case should rule on the hearing in about three months. It will be one of the judges last cases before retiring.

About Scott Nordlund 953 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