Elon Musk's SolarCity acquisition back in 2016 still faces the same lawsuit it had years ago, despite the many times the hearings and cases were seemingly coming to an end. Tesla Shareholders are now asking the courts to look into Musk's alleged coercion to the board for its purchase, and it would soon result in paying a sum of $13 billion.
Elon Musk SolarCity Purchase: Tesla Shareholders to Open Investigation
The previous lawsuits have ended in favor of the Tesla CEO, justifying his buyout to be "board-approved" and coming to a unified decision to its purchase. However, it is soon to reopen as shareholders are appealing for another investigation to determine the truth behind Elon Musk's SolarCity purchase.
The shareholders believe that Tesla's purchase of SolarCity is to protect Elon Musk's massive stakes in the company and saw that it is failing, hence the "buyout."
Tesla shareholders argue that the decision by the board believes it got approved because of Musk's alleged "coercion" to its purchase and not something that the board naturally decided.
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SolarCity Buyout: 2016 Deal Was a Coercion? Why Is That?
The purchase for SolarCity came in the form of stocks for Tesla, and since its value soared through the skies, the then $2.6 billion is now at $13 billion. The current stock price is something that Tesla shareholders want back from Elon Musk, and according to Tech Crunch, the shareholders want it back from the CEO.
The SolarCity acquisition was a buyout and coerced by Musk into the purchase, something that the board did not allegedly approve.
Tesla and SolarCity's Acquisition in 2016
The acquisition of SolarCity by a clean energy company like Tesla seems reasonable as both foci on renewable energy and electric power. However, that is not what the company's shareholders feel like and are now incriminating the Tesla CEO for his reasons in buying the failing company.
More than five years ago, the shareholders had already caught a whiff of this issue and filed a complaint against the CEO for the continued purchase of the solar company for only $2.6 billion.
The previous acquisition of Tesla already got approval from the Antitrust board of regulators, especially as both companies share almost the same goals for clean energy.
However, there has not been enough case to incriminate Elon Musk and his 2016 purchase of SolarCity via Tesla, which was repeatedly brought to court and faced different probes. Nevertheless, the new lawsuit would look into another angle in the case to soon determine if Musk had something to do with the board's decision that affected the purchase.
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This article is owned by Tech Times
Written by Isaiah Richard
