The solar energy services provider SolarCity was acquired by Elon Musk, CEO of Tesla in 2016. As per recently uncovered emails exchanged between SolarCity’s ex-finance Chief B. Buss and Musk, it was revealed that Musk was very well aware of SolarCity’s financial woes due to liquidity crunch.
On Friday, thousands of unsealed court papers were published by PlainSite, the advocates of legal transparency which also included depositions of board members of Tesla and Musk, which highlighted the reason and method of acquisition of SolarCity by Tesla with the latter expending $2.6 B in the acquisition. Musk was the largest shareholder and also chairman of the SolarCity.
The TCF (Think Computer Foundation) originally acquired those documents which are a share of a complaint filed in Sept 2016, by shareholders of Tesla who purported that the deal of the SolarCity summed as bailout for Tesla CEO along with his other trades.
When the deal was proposed by Tesla in June of 2016, it was followed by skepticism from investors, and on the declaration, the stock plunged over 10%. As per the recently uncovered emails, on Sept 18, Musk emailed Buss that in order to have investors on the board, the liquidity crisis needed to be handled by Tesla and a LOI (Letter Of Intent) has to be signed to strike deal with Panasonic.
Musk wrote that to alter sentiments of the investors 3 things were required to happen- Resolution of SolarCity’s liquidity crisis, requirement of LOI involving Panasonic to see production risk of the solar cell and a combined product demo.
Musk and Tesla are currently getting a blowback, of whose part is the lawsuit, post three years of SolarCity’s acquisition, whose business has plunged since then. Addition to that, Tesla is also being sued by Walmart for gross negligence, break of contract and disappointment in living up to company marks regarding installations of solar panel that got ablaze on certain stores’ rooftops.
Kelly has been one of the most knowledgeable personalities in the Global Newspaper 24’s Business section team. While she has completed MBA in Finance Degree, she has always demonstrated her core knowledge in business management and affection toward the freedom of expression through words by crafting superlative news reports for all the readers of the Global Newspaper 24 platform. At present, Kelly works as the Head of the Business Department and is responsible for checking all the news reports for readability while adhering to the quality standards of Global Newspaper 24. Kelly is a super-active personality that loves to write news reports on various topics such as mergers & acquisitions, latest product launches, and major business events.