© Reuters. Tesla CEO Elon Musk leaves after taking a stand to defend Tesla Inc’s 2016 deal for SolarCity in a case before the Delaware Court of Chancery in Wilmington, Delaware, US July 12, 2021. REUTERS/Jonathan Ernst
by Tom Hales
(Reuters) – The Delaware Supreme Court said on Tuesday that a lower court has correctly concluded that Telsa chief Elon Musk did not overpay the electric car maker for SolarCity in 2016, ending years of litigation over the $2.6 billion deal. .
Musk was the largest shareholder in the two companies at the time of the deal, and Tesla shareholders (NASDAQ:) alleged that he pushed the automaker’s board into the deal to rescue the billionaire’s investment in the ailing rooftop solar company.
The state’s highest court said that while a Delaware court judge was wrong in some parts of his analysis, his general premise still supports his decision that Tesla paid a fair price for SolarCity.
