Court hears appeal of ruling favoring Musk in SolarCity deal

By RANDALL CHASE
AP Business Writer

DOVER, Del. (AP) — Attorneys for a group of Tesla shareholders are asking Delaware’s Supreme Court to overturn a judge’s decision in favor of CEO Elon Musk in a lawsuit challenging the electric car maker’s $2.4 billion acquisition of a solar panel company founded by two of his cousins. The plaintiffs argued Wednesday that a trial judge erred in finding that Tesla’s acquisition of SolarCity in 2016 was “entirely fair,” despite his concerns about the deal process and Musk’s involvement. At the time, Musk owned about 22% of Tesla’s common stock. He was also the largest stockholder of SolarCity and its board chairman. The judge nevertheless determined that Tesla’s board meaningfully vetted the deal, and that Musk did not stand in its way. He also said the evidence showed that Tesla paid a fair price.