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Elon Musk’s SolarCity trial day 1: Arguments, quotes, and testy exchanges
As he faced a lawsuit from Tesla shareholders about the SolarCity acquisition in 2016, Elon Musk was firm in the notion that he didn’t have any sway over the company’s board when it approved the deal. Musk highlighted this point on Monday, as he testified in a Delaware courtroom as part of a lawsuit filed by Tesla shareholders, who alleged that both the CEO and the company’s board breached fiduciary duties when they decided to acquire SolarCity.
When SolarCity was acquired by Tesla, Musk was the chair of the company and its largest shareholder. The CEO later noted that the acquisition was a “no brainer,” and it was completed with over 85% of TSLA shareholders voting in favor of the deal. Considering Musk’s ties to SolarCity and the solar installer company’s financial fluctuations at the time, however, critics argued that the deal was essentially a bailout. Musk was also accused of vowing retaliation against any Tesla director who voted against the acquisition.
According to Musk, Tesla’s now-Chairwoman Robyn Denholm was the one who set the final price of the deal, as well as the terms of the SolarCity acquisition. Musk noted that he was kept abreast on the basic progress of the deal, but he was otherwise recused. The CEO also stated that the notion of him controlling Tesla shareholders was implausible. “I don’t think it’s possible to control” big institutional investors like Fidelity and T. Rowe Price,” Musk said.
Things heated up when Musk started responding to questions from Randy Baron, the plaintiff’s lawyer who had already traded barbs with the CEO in the past. From the start, Baron gave Musk “fair warning” that “we have a long way to go,” and that his questioning would probably take all day and well into Tuesday. Musk joked, stating that he could tell the questioning would be long due to the size of Baron’s binder.
As part of his cross-examination, Baron showed a slide showing how far below forecasts was the amount of solar energy Tesla has deployed since its acquisition of SolarCity, especially as the solar provider was one of the US’ most dominant players in the residential solar market before it was integrated with the EV maker. Musk responded that 2017 to 2019 were the “three hardest years of (his) entire career” and that he was working hard to save Tesla at the time. After this, the pandemic shut down government permitting offices, which was a challenge to the US residential solar market. When Baron warned him that things would be really slow if Musk kept elaborating on his answers, the CEO noted that “some of your questions are tricky and deceptive.”
Musk and Baron’s exchanges only got more heated as the day wore on. When Baron asked Musk if he ever “rage fired” anyone or treated people with derision, the CEO noted that he gives “clear and frank feedback which may be construed as derision,” but he did not “rage fire” anyone. The lawyer then played several clips of Musk’s deposition showing his tense exchanges with the CEO. “That was openly derisive not for some benefit of Tesla, but because you didn’t like what was happening, correct?” Baron asked in an apparent attempt at provoking Musk.
Musk later said that he does not respect Baron because he worked for Milberg Weiss, a law firm whose partners were imprisoned for paying kickbacks to expert witnesses and plaintiffs; and Robbins Geller, whose partners also ended up incarcerated. “You were mentored by criminals. Then you continued to be mentored by criminals and that is why I do not respect you… I have great respect for the court, but not for you. I think you are a bad human being,” Musk said, later accusing Baron of being a “professional bully” who used his words to cut. “That’s very sad,” the CEO remarked.
Other loaded exchanges between Musk and Baron happened after the lawyer asked the CEO if he does not like it when people tell him what to do. Musk calmly responded that this was not exactly the case. “In fact, if I’m not mistaken, I view critical feedback as a gift,” Musk stated. This point could be confirmed by Musk’s reception to critical feedback from automotive veteran Sandy Munro, who heavily criticized the Model 3’s design in a teardown. Musk also added that if it were up to him, he would rather just work as an engineer.
“To be honest, I don’t want to be the boss of anything. I won’t want to be CEO. I tried not to be CEO of Tesla, but I had to, or it would die. I rather hate being a boss. I’m an engineer,” Musk said.
Amidst Musk’s exchanges with Baron, however, the CEO’s point was clear. SolarCity, like any aggressive startup in a high-growth industry, had a tendency to have negative cash flow. Musk noted that Amazon was an example of this, and so was Tesla, and yet, both companies are thriving now. Simply put, the CEO argued that SolarCity’s financial strains when it was acquired were not out of the norm, as even Tesla was in the same place at the time, and if needed, the solar company could have just raised capital.
“Daring enterprises burn cash and take risks to achieve something worthwhile, or even great. Tesla was subject to those risks as much as SolarCity was, but that doesn’t mean they weren’t both worthy ventures. So can’t we acknowledge that even my once-stumbling solar efforts are starting to bear fruit?” Musk noted.
The first day of Elon Musk’s SolarCity trial was adjourned until 9:15 a.m. ET on Tuesday. The CEO is expected to continue his cross-examination with the plaintiff’s lawyer.
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Tesla snags Lamborghini alum to help in newly entered market
Tesla has snagged a Lamborghini alum to help with its entrance into a new market, which has proven to be an intricate situation for the automaker.
A report from Bloomberg states that Tesla has hired Sharad Agarwal, who was formerly employed by the Italian luxury carmaker, to run its operations in India. With Lamborghini, he was employed to handle operations in India.
Tesla launches in India with Model Y, showing pricing will be biggest challenge
Tesla has gone through quite a few different team members with its launch in India, starting with a few hirings a few years ago, well before the company actually committed to selling cars in the country.
The move helps Tesla streamline its executive decision-making process, as it previously had employees in India reach out to managers based in China, among other areas. Agarwal will be stationed in India and will handle the company’s operations.
Tesla’s mentality behind the strategy is to have local leadership, something that seems to cater to the market specifically.
Tesla had previously put Isabel Fan, the manager of Southeast Asia for the company, in the position. However, Tesla seemed to want someone who was more permanent and would be dedicated to India exclusively.
India has the largest population on Earth and has a massive automotive market for that reason. Tesla stands to gain a lot from a strong performance in India, and its clean energy vehicles could help with pollution of all kinds in the region.
Tesla’s path to entrance in the Indian market was a long one, as the company tried for nearly ten years to get into the elusive region. Back in 2016, CEO Elon Musk said Tesla “would love to be in India,” teasing the Model 3.
By 2017, Tesla had met with officials from the country, but tried to get import duties down to nothing from 100 percent.
Indian authorities denied Tesla’s request.
For years, Musk met with Prime Minister Narendra Modi to try and iron out a deal of some sort. Nothing truly came to fruition, at least until last year, when real movement started.
By 2024, India had introduced a strategy to reduce import duties for some companies, which was enough for Tesla to make a move. It is now 2025, and the company still has not committed to building a factory in the region. However, it is not completely out of the question.
News
Tesla Sentry Mode helps lock up drive-by shooting suspect in Seattle
“A nearby Tesla actually captured the video that showed a man crouched behind a vehicle firing gunshots. A lot of vehicles record, and officers know that Teslas, especially, record, so we use that video all the time in these instances.”
Police in Seattle, Washington, are crediting Tesla’s well-known Sentry Mode for helping find a suspect in a drive-by shooting case.
A 21-year-old was arrested for an alleged drive-by shooting in the Pioneer Square neighborhood of Seattle this past Sunday, and the leads on the case seemed to be slim.
However, a Tesla parked nearby was able to record the shooting, as well as the car that the suspect hopped in after the crime occurred. It helped police identify the person they were looking for.
Seattle Police Department Detective Brian Pritchard said to MyNorthwest that the Tesla was a critical part of finding the suspect and placing him under arrest:
“A nearby Tesla actually captured the video that showed a man crouched behind a vehicle firing gunshots. A lot of vehicles record, and officers know that Teslas, especially, record, so we use that video all the time in these instances.”
The Tesla footage helped the Police put the suspect into handcuffs about an hour after the crime was committed. They are currently charged with drive-by shooting and unlawful possession of a firearm.
Tesla Sentry Mode is a security feature the vehicle utilizes to help solve crimes like vandalism, but it is also a cool feature that has caught things like accidents and other incidents on camera.
Many people still do not know about it, including the many vandals who keyed or broke the windows of Teslas earlier this year, as people damaged others’ cars in an act of retaliation against CEO Elon Musk when he became involved in politics.
This is far from the first time Sentry Mode has helped Police Departments solve crimes. Last September, we reported on Oakland’s Police Department in California using Teslas near crime scenes to help solve cases.
Tesla Sentry Mode is Oakland PD’s secret weapon against rising crime
Sergeant Ben Therriault, president of the Richmond Police Officers Association, said, “We have all these mobile video devices floating around,” in reference to the Teslas that sit and capture nearly everything that surrounds them.
Sentry Mode has helped officers arrest a variety of suspects, including several people who were allegedly involved in the murder of a 27-year-old woman in Northern California.
Elon Musk
UPDATE: Tesla investors push Charles Schwab for Musk comp plan clarification
Update: 4:00 p.m. EDT – Charles Schwab has reached out to TESLARATI with the following statement, clarifying that it plans to vote FOR Musk’s compensation package:
“Schwab Asset Management’s approach to voting on proxy matters is thorough and deliberate. We utilize a structured process that focuses on protecting and promoting shareholder value. We apply our own internal guidelines and do not rely on recommendations from Glass Lewis or ISS. In accordance with this process, Schwab Asset Management intends to vote in favor of the 2025 CEO performance award proposal. We firmly believe that supporting this proposal aligns both management and shareholder interests, ensuring the best outcome for all parties involved.”
There have also been updates to the headline and various paragraphs to reflect this as well as accuracy.
Tesla investors are pushing Charles Schwab for clarification after it was expected to vote against CEO Elon Musk’s pay package.
Several high-profile Tesla influencers are speaking out against Charles Schwab, saying its decision to vote against the plan that would retain Musk as CEO and give him potentially more voting power if he can achieve the tranches set by the company’s Board of Directors.
The Tesla community appeared to see that Schwab is one firm that tends to vote against Musk’s compensation plans, as they also voted against the CEO’s 2018 pay package, which was passed by shareholders but then denied by a Delaware Chancery Court.
Schwab’s move was recognized by investors within the Tesla community and now they are speaking out about it:
Hey @CharlesSchwab – I need to speak with someone from Schwab Private Wealth Services this week. Please reach out via email, the mobile app message center, phone, or X DM.
Here’s why this is urgent: At least 6 of your ETF funds (around 7 million $TSLA shares) voted against… https://t.co/uSgPWnfTFc— Jason DeBolt ⚡️ (@jasondebolt) November 3, 2025
If @CharlesSchwab doesn’t vote for Elon Musk’s 2025 CEO Performance Award plan, I’ll move all my assets to another brokerage. My followers, many of whom also hold assets with Schwab and collectively own at least hundreds of millions in $TSLA, may do the same.
I can’t in good… https://t.co/6iUU6PdzYx— Sawyer Merritt (@SawyerMerritt) November 3, 2025
ready to help with the @CharlesSchwab exodus
— Gali (@Gfilche) November 3, 2025
At least six of Charles Schwab’s ETFs were expected to vote against Tesla’s Board recommendation to support the compensation plan for Musk. The six ETFs represent around 7 million Tesla $TSLA shares.
Jason DeBolt, an all-in Tesla shareholder, summarized the firm’s decision really well:
“As a custodian of ETF shares, your fiduciary duty is to vote in shareholders’ best interests. For a board that has delivered extraordinary returns, voting against their recommendations doesn’t align with retail investors, Tesla employees, or the leadership we invested to support. If Schwab’s proxy voting policies don’t reflect shareholder interests, my followers and I will move our collective tens of millions in $TSLA shares (or possibly hundreds of millions) to a broker that does, via account transfer as soon as this week.”
Tesla shareholders will vote on Musk’s pay package on Thursday at the Annual Shareholders Meeting in Austin, Texas.
It seems more likely than not that it will pass, but investors have made it clear they want a decisive victory, as it could clear the path for any issues with shareholder lawsuits in the future, as it did with Musk’s past pay package.
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