WILMINGTON, Del.—Elon Musk said Tesla bought SolarCity Corp. for one traditional reason: to change into higher than a automobile firm.
The Tesla Inc. chief govt made the argument as he wrapped up two days of once in a while feisty testimony in court, defending the roughly $2.1 billion tie-up performed in 2016 at a time each Tesla and SolarCity had been financially struggling.
Vice Chancellor Joseph Slights III, the presiding capture in a shareholder lawsuit, drilled into that deal common sense at the cease of Mr. Musk’s testimony. “Tesla changed into once going through headwinds, had its comprise issues,” the capture said. “And so why is it at this moment that Tesla is pursuing this acquisition of a photo voltaic firm?”
“The function is now to not be a automobile firm. There are a kind of automobile firms,” Mr. Musk spoke back. “But an electrical automobile firm is phase of a sustainable energy future, as is photo voltaic and stationary storage.”
A community of shareholders is alleging that Mr. Musk controlled the takeover while having a monetary curiosity in each firms, that a very good deal of its directors had been conflicted and that Tesla overpaid for SolarCity. Mr. Musk has said he didn’t dictate the deal path of or tag and recused himself from the shareholder vote.