Jul 12, 2021 - Economy

Elon Musk goes to court to defend Tesla's SolarCity purchase

Kate Marino

Photo of Elon Musk in black shaking hands with someone outdoors — Photo: Christophe Gateau/Picture Alliance via Getty Images

Elon Musk appeared in court Monday to defend Tesla's 2016 purchase of SolarCity — and to downplay his own power over the company that's practically synonymous with his name.

Why it matters: If the court finds that Musk acted to benefit himself, rather than Tesla, in the SolarCity deal, he may have to personally reimburse Tesla for the $2.6 billion acquisition.

The backstory: When Tesla bought SolarCity, the home-solar company had just turned in two years of massive losses and owed $3 billion in debt. Critics called it a bailout.

Musk himself owned 22% of SolarCity at the time.

What he's saying: "Since it was a stock-for-stock transaction and I owned almost exactly the same percentage of both, there was no financial gain," Musk said in court Monday, CNBC reports.

He disputed the accusation that he controlled Tesla board members or that he forced them to back the deal, CNBC wrote.

Details: The case was brought by plaintiffs who owned Tesla's stock. Arguments kicked off Monday and are expected to go for two weeks.

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Elon Musk goes to court to defend Tesla's SolarCity purchase

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