22:00 10/07/2021
If he loses the case, he could pay up to $2 billion from his estate
Musk will be the first witness in a trial to defend his role in Tesla's $2.6 billion acquisition of SolarCity. Shareholders have sued Musk and Tesla board members, claiming the 2016 deal was only profitable for the car company.
According to "CNBC", they also claim that the purchase resulted in the "illegitimate" enrichment of the Musk family, whose members were among the largest shareholders. According to them, Musk and others have not made the agreement transparent, but the latter insists that he was "drawn" in the negotiations on the sale and purchase.
SolarCity was founded in 2006 by Peter and Lyndon Rive, cousins of Elon Musk. In 2016, Tesla bought the energy company for $2.6 billion.
Last year, appointed board members decided to sell the company to Tesla for $60 million, but did not acknowledge the alleged violations. Musk, the world's second-richest person, was the only defendant who chose to take the battle to court.
Tesla and Musk are facing multiple other lawsuits, including one over Musk's compensation package and a number of federal investigations into the company's own financial records.
Clan News
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