Elon Musk’s trial begins on Monday. Some shareholders have accused Tesla’s CEO of forcing the company to save capital for solar panel company SolarCity in 2016.
The plaintiffs want the self-styled “Emperor of Mars” to pay Tesla over two billion euros, exactly the same amount invested in SolarCity. According to Reuters, if Musk, this is one of the largest processes in the history of the United States, which brings together, on the one hand, part of the shareholders meeting, and on the other, the CEO.
In the next two weeks, according to the British agency, the Wilmington court in Delaware will find out whether Musk owned 22% of SolarCity at the time of the operation or not.
Plaintiffs accuse Musk of gaining benefits for himself and four others through Tesla’s capital, as they claim the businessman then owned 22% of SolarCity.
Apart from Musk, the indictment alleges that four of Tesla’s board members were “directly or indirectly” linked to the share capital of the solar panel company, and that they even tried to boost the company’s funding through the car brand.
“We are highly dependent on Elon Musk’s services,” reads the introduction to Tesla’s 2020 annual report.
Musk’s defense argues that the SolarCity deal was a success for Tesla shareholders, demonstrating that the deal was not only fair, but also beneficial for the car brand. “The company’s shares rose after the signing of this agreement in 2016”, – emphasize the lawyers of the “Emperor of Mars”.
