Evan Chesler, one of Musk’s lawyers, told the court that the deal was not a bailout. SolarCity was far from bankrupt. His position was on par with many high-growth tech companies.
Shareholder Attorney Lee Rudy requested the court to order Musk to return Tesla stock. Its current price will be around $13 billion (about Rs 96,980 crore). Rudy said the court should consider Musk’s contempt. He repeatedly clashed with the shareholder lawyers and insulted them. Rudy said it would be an unexpected event for Elon Musk if he were to hold shares he shouldn’t have.
The request to order Elon Musk to return the stock was called ‘absurd’ by his lawyer, Chesler. Said that this would undermine his five years of success at Tesla.
Tesla acquired SolarCity as it approached the launch of its Model 3. It was a sedan car and was very important to the company. Shareholders alleged that the deal was distracting. Tesla was burdened by SolarCity’s financial crisis and debt.
Shareholders claim that despite owning only 22 per cent in Tesla, Elon Musk used to talk to board members in a brazen manner. If the plaintiffs can prove this, it would increase the chances for the court to conclude that the deal was not fair to the shareholders.
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