March 27, 2023

Dubai Week

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Judgment in favor of Elon Musk in $ 13 billion lawsuit

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When Elon Musk, CEO of Tesla, ordered the electric car maker to seize Solar City in 2016, a Delaware judge ruled that Musk was its chairman and major shareholder.

Tesla shareholders accuse Musk of forcing the board of directors to buy SolarCity in order to save its investment. They demanded up to $ 13 billion in damages.

The ruling comes as Musk uses his huge fortune to buy Twitter, which accepted his $ 44 billion offer on Monday. Another court ruling yesterday came on the heels of Musk’s attempt to oversee his tweets about Tesla.

“The compelling evidence shows that Tesla paid a fair price. It was worth how much Tesla paid for Solarcity, and this acquisition was very beneficial to Tesla,” Judge Joseph Slats said.

The judgment may be appealed. One of the shareholders’ attorneys said he was evaluating the next steps.

Following the 10-day trial in July, Musk testified for almost two days.

The deal was worth $ 2.6 billion in 2016, including the purchase of all of the company’s shares.

According to Forbes, Musk, the world’s richest man with a net worth of $ 265.6 billion, owned about 22 percent of both companies at the time.


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