Tesla and Musk hid facts about SolarCity deal and SpaceX involvement, shareholders claim
Large shareholders are suing Tesla over their acquisition of SolarCity in late 2016. Unsealed court docs revealed new details about their claims on Monday.
investors, including some pension funds, believe its $2.6 billion acquisition of SolarCity in 2016 never should have happened. The documents claim that "Prior to the Acquisition, Musk described Tesla, SolarCity, and SpaceX as a 'pyramid' atop which he sat; it was 'important that there not be some sort of house of cards that crumbles if one element of the pyramid . . . falters.'"
Shareholders say that even though Musk claims he recused himself where it was proper to do so, he was never really divorced from the deal-making process. He and his first cousin, Lyndon Rive, the co-founder and former CEO of SolarCity, spent time hatching out a plan to save the solar company from a liquidity crisis while on vacation in Lake Tahoe in early 2016, the filings say. Soon thereafter, Tesla's then-CFO Tom Wheeler drafted a proposal for the Tesla board of directors to do the deal.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Elon Musk is not the problem at Tesla — blame the people around himAuthors Rob Shelton and Marc J. Epstein, Ph.D, explain how to deal with maverick leaders like Elon Musk.
Read more »
Why Americans Don’t Buy Electric Cars (Hey, The Tesla Model 3 Isn’t That Popular)Most Americans aren’t interested in electric vehicles.
Read more »
Elon Musk is not the problem at Tesla — blame the people around himAuthors Rob Shelton and Marc J. Epstein, Ph.D, explain how to deal with maverick leaders like Elon Musk.
Read more »
Here’s How to Tell If Your Skin’s Moisture Barrier Is DamagedDerms weigh in with the facts.
Read more »
Ted Danson -- Good Genes or Good Docs?!Ted Danson sure is in a good place with his looks!
Read more »