This coming Monday, Elon heads to a Delaware court, to defend his decision to purchase SolarCity for $2.2 Billion four years ago. He is accused of pushing for this acquisition, using Tesla's buying power, only to benefit himself and those on the board.|
It is worthy of note, that while the board was also part of this suit, they settled separately for $60 million, whereas Musk decided to take the case to court and test his luck for a second time. You may remember he was recently acquitted on the 'pedo guy' trial, which was somewhat of a surprise to most of us watching the case.
Elon is known to be outspoken, and apparently the Delaware court is known for its old-school ways which may or may not prove favorable to Elon's style. Reuters reports that the case will be decided by Vice Chancellor Joseph Slights. I am pretty sure the last time I heard the term "Vice Chancellor", I was watching Star Wars. Even Wikipedia does not have a page for this term within the US legal system. So yeah... old school.
Were he to lose this case, Elon could be forced to surrender 2.2 million shares of TSLA that he received as part of the deal (for his ownership portion of SolarCity). That's more than a billion dollars for those counting.
JoseQ's Look at this Thing
Considering the rest of the board settled for $60 million and Elon was just one member of the accused group, I feel like that would've been an easier path to get this behind him. BUT, if Elon decided to go to the court, it's probably for one of two reasons: Either he had a legitimate belief that SolarCity was a great acquisition for Tesla, or he feels it's impossible to prove otherwise.
On paper, the acquisition makes a lot of sense. Their technologies play well together. The fact that SolarCity's role within Tesla sort of disappeared into the shadows for a while, is more likely a result of the Model 3 launch. If anyone remembers, Tesla was on the brink of disappearing itself and it made sense to reroute all resources to saving the company. The Model 3 was the only path forward, not solar panels. Once that nightmare was behind them, their solar plans have resumed and are picking up speed. All of that should be easy to demonstrate in court. If the courts get smart Elon, and not shoe-in-mouth Elon, he should come out winning again.