If you’ve been following the story of the Elon Musk-owned Tesla, you’ve heard about the CEO’s influence on the solar company. But what exactly is Musk’s influence on solar power and the lawsuit against it? We’ll explain why Musk might be the one to blame for the current solar energy price hike and why the solar industry needs to stop playing politics with solar power. And what exactly did Musk do to influence the solar industry in the first place?
Elon Musk’s Influence on Solar Company
It’s hard to overlook Elon Musk’s influence on SolarCity. The company’s founders grew up with him in Pretoria, South Africa. Elon Musk’s impact on the company started with his family’s investment in the business. He backed the brothers and the company’s board of directors, which includes his brother Kimbal. As a result, SolarCity’s stock price plummeted 77% from its peak in February 2014. The company’s debt was approaching $3.4 billion, and facing a cash crunch. In June, Musk proposed a deal to buy SolarCity from Tesla.
A recent example of Tesla’s influence on the solar industry is the company’s solar roof, which uses the same technology as SolarCity. The company featured its solar roof on a former Desperate Housewives set. The pitch emphasized replacing roof shingles with solar panels and feeding that energy into a Tesla Powerwall battery system that could charge a Tesla car. The system was expected to bolster the adoption of solar panels, but delays plagued the product’s launch, and the major rollout didn’t begin until this year.
While it’s easy to dismiss Musk’s role in solar company development as a “wacko” narcissist, there’s no doubt he’s serious about saving the planet. As the founder of Tesla, he granted humans the right to use Tesla’s patented technology. However, his trade secrets remain jealously guarded. A musk is already an earnest man. He genuinely cares about our planet, but his behavior is often not so severe.
Elon Musk’s Influence on Solar Company’s Pricing
If you’re wondering whether Elon Musk’s involvement in the SolarCity pricing strategy will affect your solar bill, you’re not alone. The CEO of Tesla Motors recently took the stand in a Delaware courtroom to defend the decision to purchase the solar-panel company. He said combining both companies’ strengths and costs made the deal worthwhile. Tesla also benefited from SolarCity’s technological advances, including its ability to sell and install solar panels on rooftops.
The lawsuit, filed by shareholders of SolarCity, claims that Musk’s family has intertwined interests in the companies and is “influential” in decisions made by the Tesla board. Musk’s cousins founded SolarCity, and he was chairman and CEO of the company, with a 22 percent stake. The company was on the verge of going belly-up when Tesla acquired it for $2.6 billion. Tesla’s board includes the brother of Musk’s former CFO.
The Tesla board has been skeptical of the proposed merger. Tesla employees feared that SolarCity would strain Tesla’s resources. However, solar power has become a huge part of our energy future and is a viable alternative for most American households. Last year, the solar power industry created twice as many jobs as coal, representing 40 percent of the new electricity capacity added to the grid. That’s more than coal and natural gas combined.
Elon Musk’s Influence on Solar Company’s Lawsuit
A new lawsuit alleges that Musk’s personal and business interests influenced Tesla’s decision to purchase SolarCity. The shareholders of Tesla and SolarCity allege that Musk’s influence on the solar company’s lawsuit was substantial. Musk has been accused of self-dealing, including inflating SolarCity’s finances and misleading investors about its future. The latest example is a defamation lawsuit brought against Musk after he called a British diver a “pedo guy” on Twitter.
Musk has admitted to having a “great deal of influence” over the SolarCity lawsuit in lawsuit. In one of the depositions from early 2019 in which he denied the allegations, Musk described the solar company’s attorneys as “a shameful bunch.” The jury could award Elon Musk less than $2.6 billion, the amount Tesla paid for SolarCity in 2016. But the company’s investors believe Musk personally benefitted from the acquisition and he used it to insult the opposing party in public.
Earlier this year, a shareholder lawsuit alleged that Musk had improperly influenced the SolarCity board by sitting on its board. Musk also denied that he was the cause of SolarCity’s bankruptcy. Musk’s lawyer, Evan Chesler, also denied that Musk influenced SolarCity’s lawsuit against the investors. While the company may have acted in good faith, this did not prevent the shareholders from suing Tesla.