Elon Musk told a court that Tesla’s more than $US2 billion ($2.67 billion) acquisition of SolarCity in 2016 wasn’t a bailout of the then-failing solar provider and got combative with the attorney for plaintiffs on the first day of trial testimony in a legal fight over the deal.

At the start of what’s expected to be a two-week trial in Wilmington, Delaware, Musk responded to a question from his own lawyer by saying he “definitely” did not have any sway over the company’s board when it approved the SolarCity deal. Shareholders suing the Tesla chief executive officer claim he got the company to essentially rescue another firm that he also controlled.

Musk, wearing a black suit and tie, stayed cool during three hours of testimony on Monday, local time. He was first questioned by his own attorney, Evan Chesler of Cravath, Swaine & Moore LLP.

The Tesla CEO denied vowing to retaliate against any director who voted against the acquisition and said he had no control over their compensation or board committee assignments. Musk said Tesla’s now-Chairwoman Robyn Denholm set the final price and deal terms for the SolarCity buyout. At one point, Musk said he hates being the CEO of Tesla but had no choice. Musk has been the CEO of the company since 2008.

The question of who controlled the SolarCity purchase is a key part of the trial. Investors and pension funds who are leading the suit allege that Musk and Tesla’s board breached their fiduciary duties when they orchestrated the acquisition of SolarCity, an installer of rooftop solar panels. In June 2016, Musk was the chair and the largest shareholder of both companies when he stunned Wall Street by announcing that Tesla would acquire SolarCity in a deal he later called a “no brainer”.

The plaintiffs are trying to persuade Delaware Chancery Court Judge Joseph Slights III that Musk used his outsize influence and reputation to steamroll Tesla directors into approving the buyout and to manipulate a majority of shareholders to vote for it. Musk is the lone defendant in the case, which has been delayed by the pandemic; the rest of the board settled for $US60 million last year.

The Tesla board kept Musk updated on the basic progress of the deal, but he otherwise recused himself, Musk testified. He scoffed at the idea that he controlled Tesla’s shareholders.

“I don’t think it’s possible to control” big institutional investors like Fidelity and T. Rowe Price, he said.

When questioned by Randy Baron, the attorney for the plaintiffs, things got testy as the two tangled over time lines and SolarCity’s profitability after the acquisition.

Read more:

https://www.smh.com.au/business/companies/elon-musk-tells-court-tesla-s-solarcity-deal-was-no-bailout-20210713-p5893j.html

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