Investors argue Musk should repay $9.4 bln to Tesla for SolarCity deal

Tesla CEO Elon Musk reacts to onlookers as he departs after taking the stand to defend Tesla Inc’s 2016 deal for SolarCity in a case sooner than the Delaware Court docket of Chancery in Wilmington, Delaware, U.S. July 12, 2021. REUTERS/Jonathan Ernst

WILMINGTON, Del., Oct 4 (Reuters) – A Delaware purchase should repeat Elon Musk to repay $9.4 billion to Tesla Inc (TSLA.O) for the advantages he obtained by pushing the electric car maker in 2016 to bewitch an ailing describe voltaic firm he partly owned, in step with Tesla traders in a court filing leisurely Friday.

The traders said a “easy and practical” strategy to undo the advantages they are saying Musk improperly obtained from the $2.6 billion deal for SolarCity will be to repeat the chief executive to near assist the Tesla shares he obtained for his stock in the rooftop describe voltaic firm.

Musk obtained 2.4 million Tesla shares, which occupy grown to 12 million shares as a result of stock splits and are for the time being worth about $9.4 billion. The traders said Musk, with out a doubt some of the arena’s richest americans, may perhaps well also repay the worth of the stock to the firm.

Tesla stock used to be up 2.5% in early Monday procuring and selling at $792.76 per part.

The lawsuit used to be introduced by union pension funds and asset managers. They divulge in their post-trial rapid that Musk did no longer recuse himself from the deal negotiations and never disclosed SolarCity used to be practically out of cash.

Musk said in his devour post-trial rapid filed leisurely Friday that SolarCity used to be the culmination of a decade-prolonged conception to create a vertically built-in comely vitality firm providing roof-top describe voltaic generation mixed with Tesla’s battery storage and autos.

He said the deal used to be struck at a good label and authorised by 85% of Tesla shareholders. read extra

The briefs follow a two-week trial in July in Wilmington, Delaware. read extra

The purchase, Vice Chancellor Joseph Slights, must aloof resolution a key demand that may perhaps well prefer the final result of the case – whether or no longer Musk is a controlling shareholder no subject proudly owning a minority stake in Tesla. read extra

Slights has scheduled post-trial arguments for January and a ruling would likely happen months after that.

Reporting by Tom Hals in Wilmington, Delaware, Editing by Rosalba O’Brien

Our Requirements: The Thomson Reuters Have faith Principles.

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