Latest / Elon Musk Podcast / Tesla and Musk hid facts about SolarCity deal and SpaceX involvement court docs claim

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Tesla and Musk hid facts about SolarCity deal and SpaceX involvement court docs claim · Elon Musk Podcast

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  Hello and welcome back to the Elon Musk pod.
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  It's a podcast about everything Elon Musk from Tesla SpaceX
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  SolarCity boring, Etc. Make sure to hit that subscribe
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  button and you'll get news about Elon when it pops up.
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  So there's a problem going on with Solar City right now, Elon
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  Musk company. Tesla has bought solar City
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  while ago. And some of the shareholders say
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  that Tesla the acquisition of Solar City in late 2016 was now,
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  right? So, large shareholders are suing
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  Tesla over that acquisition or yeah, about that acquisition.
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  So that's what unsealed court documents revealed on Monday of
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  this week. So before the deal closed, it
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  was 2.6 billion dollar SolarCity, hid critical details
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  about his relationship with SpaceX and that's from the
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  Auditors of Ernst & Young. So, this isn't, this is kind of
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  a corruption kind of thing, right?
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  So it looks like they hit some documents.
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  This is, this is all speculation, by the way.
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  This is a suit that they're bringing up.
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  This isn't this is isn't proven quite yet, so this is just stuff
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  that's happening. So a financial advisor for
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  SolarCity, could find no other bidders for the company and it
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  was just Tesla at that time that were optioning to buy this.
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  And that's what shareholders have said the hey nobody was
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  interested in Solar City and that Tesla came along and they
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  purchased it and some things were hidden.
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  So in these court documents, they show why a number of large
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  Tesla investors. Including some Pension funds
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  believe, it's two point six billion dollar acquisition of
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  SolarCity should never have happened.
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  And the documents are an opening brief in a shareholders lawsuit
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  against Tesla over the acquisition.
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  But they were usually and which, you know, Lee usually court.
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  Documents are there, usually heavily redacted, but they
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  published a full version of this document Plain Sight.
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  Is the is the place where you can check it out.
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  They published the whole thing on Monday.
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  So shareholders are accusing Tesla of improperly valuing the
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  SolarCity deal, they provided flawed analysis and misleading
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  investors. Amongst other things And in the
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  lawsuit, which was originally filed in 2016 is just kind of
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  coming to Aaron. Now, it's one of many things
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  that are facing Tesla and Elon Musk, including a lawsuit from
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  Walmart. Over Tesla solar panels that
• 5:17
  caught fire on the rooftop system stores and at least two,
• 5:21
  wrongful death lawsuits filed against drivers dying.
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  While drivers were using autopilot.
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  And there's also a defamation suit against Musk.
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  From Vernon unsworth, because Elon Musk said some very
• 5:38
  horrible things about him and they said he called him a
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  pedophile, Etc. So there's some stuff going on
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  with the legal matters, with Elon Musk, right?
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  He's not infallible and I'm one of his biggest fans that's why I
• 5:51
  made this podcast. I love the guys, great, and he's
• 5:53
  doing great things for the world, but he's a human just
• 5:56
  like the rest of us. He's under incredible pressure
• 5:59
  and he's doing whatever he can to kind of get by.
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  You know, and to keep pushing through with these amazing
• 6:05
  things that he's doing. So, I'm a fan and I don't want
• 6:09
  anything bad to happen to the guy and this is the latest
• 6:12
  that's been happening. So I actually have to take a
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  quick break for a sponsor. And if you haven't heard of
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  notes below and just sign up real quick.
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  It only takes a couple seconds. Thanks Audible, and so now let's
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  go back to To this lawsuit, though.
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  So shareholders are accusing. Based on the claims of the
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  lawyers that looked for a Payday in are not representative of our
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  shareholders who support our mission and ultimately voted in
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  favor of the acquisition. That's what test Tesla said.
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  The Acquisitions made in the plaintiffs, brief are false and
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  misleading as Tesla and SolarCity publish all material
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  information in its proxy. And other public filings for all
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  shareholders to consider before deciding on the transaction
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  providing clean renewable energy generation Raishin through solar
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  has been a critical part of our mission ever since 2006 and our
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  acquisition of Solar City has enabled and continues to enable
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  a significantly faster path to achieve our goals.
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  That's all Tesla. So they said hey we have the
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  information here, here's the information, we going to present
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  it to you. This is why we're doing this,
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  this is all the stuff that you need to know about our
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  acquisition and you should read it and maybe some of these
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  people didn't read it or maybe they read it wrong and then
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  they're filing a lawsuit because they didn't read it properly.
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  Maybe Tesla didn't do their due diligence, maybe they didn't
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  present it properly. So it's a possibility, you know,
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  something like this, could get solved in a courtroom at some
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  point. So it shows it claims to show a
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  tangled Financial personal relationship between several
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  musk Investments. Tesla SpaceX.
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  Musk is both CEO those and Solar City where he was the largest
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  shareholder and chairman. And he also was cousins first,
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  cousins with Executives Solar City. and this document claims
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  that prior to the acquisition must describe Tesla SolarCity
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  and SpaceX as a pyramid atop which he sat, it was important
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  that there not be some sort of House of Cards that crumbles in
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  one element of the pyramid, pyramid, or it falters So from
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  the very top SpaceX Tesla, all the energy stuff with Tesla.
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  So all the pyramid going from the top down, the filing says
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  the board did not reject musk's proposal as presented in the
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  proxy. Instead the board's authorized
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  management to gather additional details in to further explore
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  and analyze solar cities that SolarCity acquisition.
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  So it looks like there could be some legal problems with Elon
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  Musk could be some legal problems with Tesla SolarCity,
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  Etc. Everything's kind of intertwined
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  right now and when you need more information, make sure to hit
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  that subscribe button because I'll bring it to you as soon as
• 9:27
  I get it soon as I know anything, I'll let you guys
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  know. So I want to say thank you to
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  everybody who's listening right now.
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  This is the new podcast and I'm just kind of getting it out
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  there. You can check out my other
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  podcast which is space news pod Anything SpaceX.
• 9:40
  Everything. Space everything.
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  Everything out there. So go check that.
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  It's a fun one to, it's a cool one, so go check that out and if
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  you want more Elon Musk news, just make sure to hit that
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  subscribe button and listen every single day.
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  So, thank you so much, for taking the time out of your day,
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  to spend it here with me, the Elon Musk pod.
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  My name is Will Walden and I will see you soon.