Connect with us

News

Elon Musk’s SolarCity trial day 1: Arguments, quotes, and testy exchanges

Credit: @alex_avoigt | Twitter

Published

on

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. 

Advertisement
-

“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. 

Don’t hesitate to contact us with news tips. Just send a message to tips@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

Advertisement
Comments

Cybertruck

Tesla Cybertruck AWD is a steal at $60k, is it still at $75k? Full Review

Published

on

Tesla Cybertruck’s three configurations are all the same on the outside from an appearance perspective, but they differ slightly in price, range, performance, and other features. After yesterday’s price adjustment, Tesla’s Base All-Wheel-Drive Cybertruck is now priced at $74,990, a far cry from the $59,990 it started at several months ago.

At $60,000, the Cybertruck All-Wheel-Drive is a steal: no pickup, electric or gas-powered, comes close in terms of overall driving capability thanks to Steer-by-Wire; no truck is more fun to drive at that price, and add in Full Self-Driving for $99 per month, and you truly have the best possible pickup on the market, at least if you’re planning to use it for driving.

I unfortunately didn’t have the equipment to test towing and payload and how it impacts the truck.

But at $75,000, is it still worth it? Obviously, the question gets to be more difficult because of the $15,000 difference. But there’s still an argument.

I spent the last week with this awesome truck, and when I took it back, I was sad because it truly is the best Tesla in the lineup. I formerly said the Model S was my favorite Tesla, but after a week with Cybertruck, I can easily say it would be my choice over the now-defunct all-electric sedan.

What makes it so great? Well, a lot of things, and there are some things that I’d like to see change. However, this is a truck that truly has a serious argument for those who are thinking of trying something completely different.

Exterior and Interior

This build comes with 18″ Molten Wheels as the standard offering, but 20″ Core Wheels with 35″ tires are also available. The standard wheel option on this affordable model is not my favorite, but it can be easily swapped for something more attractive.

Overall, this particular build did have some panel gap issues that were especially noticeable between the hood and both front quarter panels. This is obviously not an “across the board” issue, as the Cyberbeast I took home for comparative reasons was significantly better overall.

The interior is different, with its textile material instead of the vegan leather. Personally, I missed the leather due to the ventilated seats, but I prefer the textile as I personally felt like they were more comfortable. This is something I’d definitely consider if I were between the three trim levels and money was not really an issue.

After 610 miles on Monday in this thing, I did not feel any different than I did when I left my house that morning. It feels like a living room on wheels; after a long drive, you truly do not feel as if you’ve been in a car all day long.

My biggest interior complaints were that I’d like at least two USB-C ports in the front; you are confined to just one, and it’s hidden in the center console. The rear row has two ports. Additionally, the windshield is super difficult to clean, so if you end up buying one of these, save your back and get something that extends.

Driving Performance and Comfort

One of the most surprising things about Cybertruck is the fact that it is perhaps the smoothest ride of any Tesla available. Most believe it might be rough, stiff, and rugged like most trucks, maybe not as forgiving on the back and bottom as you sit in it for an extended period of time.

I’m here to tell you, you won’t regret sitting in a Cybertruck for a long drive.

I put as many people who dislike EVs, don’t like Cybertrucks, or use trucks for work, and judge the Cybertruck in this thing in the past week.  Every single person who got in this truck loved it: they loved the speed, the handling, FSD, the space, the capability, and the feel.

As previously noted, even after hundreds of miles and 14 hours spent driving around Pennsylvania, I didn’t feel tired, exhausted, or in any hurry to come home. I would have driven another 300 miles without question.

Final Thoughts

If I had my choice of the three Cybertruck trims, I think I’d take the All-Wheel-Drive for a few reasons. Initially, the price is more attractive, it is not that stripped of features, and it has everything I need.

Is it worth it at $75,000? I believe it is. I’ve driven trucks that are at a higher price point and consider this to be a better product from a driving and experience perspective. However, other pickups on the market have more towing capacity, payload capacity, and range. They do not have FSD or steer-by-wire, the two things that truly make the Cybertruck in a league of its own.

I can’t think of a time in recent memory that I’ve been this excited to drive a vehicle each day, and I literally look for excuses to drive my Model Y on a daily basis. This Cybertruck just blows the Model Y out of the water in every possible way, at least in my opinion. With the size, performance, and driving experience, there is no better Tesla out there.

You can check out the full video review below. If you have any questions about the Cybertruck AWD, be sure to reach out and let me know:

Continue Reading

Elon Musk

County vote hands Elon Musk’s Vegas tunnel network a huge new target

Clark County approved 19 more Vegas Loop stations, pushing Boring Company’s entitled total to 123.

Published

on

By

The-boring-company-vegas-loop-riviera

The Boring Company just got permission to nearly double how far Vegas Loop can reach. Clark County commissioners approved 19 additional stations for the underground transit system, bringing the total entitled to 123, the company said in a post on X thanking the county for the vote. Elon Musk’s tunneling company also flagged the direction it sees the project heading long term. “Because Loop is point-to-point with no intermediate stops, in the limit, one could have a Loop station in every driveway,” the company wrote.

That framing captures how far the ambitions have moved. The Vegas Loop opened its first stretch of tunnel in 2021 and has grown its footprint through a string of county approvals since. In 2023, commissioners signed off on 18 additional stations, part of a plan that later doubled the system’s target to 69 stations across 65 miles. By the end of that year the company was describing a build out closer to 93 planned stations. Last year the long term design called for 104 stations across 68 miles of tunnel. The new approval pushes that number to 123, another jump in a project that keeps outgrowing its own blueprints.

The Boring Company gets approval for more stations in Las Vegas

Station count on paper is still well ahead of what riders can actually use. As Teslarati reported earlier this month, the network has about 11 open stations and has carried more than 4 million passengers since it began running, with newer stops at Fontainebleau and Sahara among the latest additions to the Strip corridor. A tunnel connection to Harry Reid International Airport remains under construction and has already slipped past its original first quarter target. The company is also racing to finish a Westgate to Paradise Road segment that Las Vegas Convention and Visitors Authority CEO Steve Hill has said it hopes to have running in time for November’s Formula 1 race.

The gap between entitled stations and operating ones is where the real story sits. Regulatory approval gives Boring Company the legal runway to keep tunneling toward new resorts, residential pockets and eventually the airport, but building each connection still comes down to boring machines, fire safety sign offs and construction timelines that have slipped before. The company’s Prufrock series machines set an internal record in March with a 2.28 mile tunnel near Westgate, evidence that construction has been picking up even as the list of approved destinations grows faster than the tunnels themselves.

Musk’s driveway comment reads as aspirational rather than a near term plan, but it fits how Boring Company has talked about Vegas Loop from the start: treat every approval as a floor, not a ceiling, and keep pushing county officials for room to dig.

Continue Reading

Elon Musk

SpaceX announces new Starbase for ‘thousands of Starship launches annually’

Published

on

Credit: SpaceX

SpaceX announced today that it would expand its launch capabilities into a new U.S. state: Louisiana.

Today, SpaceX, in conjunction with the Louisiana Economic Development Office, said that it will establish a new launch facility, which it will call Starbase, Louisiana. It will be located near Vermilion Parish, supporting thousands of launches each year, at least eventually.

CEO Elon Musk commented by stating, “Starbase Louisiana will ultimately have over a dozen launch towers, enabling more than 30 Starship flights per day and making it the biggest launch site on Earth!”

The expansion is SpaceX’s latest move to push its launch cadence to be more frequent than ever. SpaceX said that Starbase, Louisiana, will be built to “support thousands of Starship flights a year,” with the first coming in 2029.

SpaceX announced the new facility in partnership with the Louisiana Economic Development Office as it will bring a major influx of jobs and investments into the area. Currently, it will produce more than 3,000 new jobs in Louisiana, and SpaceX plans to invest at least $100 billion into the entire facility, ensuring that many jobs are created as a result.

Environmental Responsibility

SpaceX acknowledges the impact launches could have on marshlands, local wildlife, and water sources. Here’s how the company plans to help with the issues in Vermilion Parish:

  • Restoring the Shoreline: “In Vermilion Parish, the shoreline is eroding between 3.3 and 23 feet per year. We’re partnering with state and federal agencies to expand Louisiana’s Coastal Master Plan and Coastal Wetlands Planning, Protection and Restoration Act projects, including Gulf shoreline protection breakwaters designed to reduce wave energy and slow loss along the Gulf edge.”
  • Rebuilding the Marshlands: “In working with the state, we’re planning thousands of acres of marsh creation using beneficial-use placement of dredged material and offshore sediment sources. Restoration will also include interior marsh bank stabilization and rebuilding marsh in remnant canals. These projects can reconnect fragmented wetlands, restore natural buffers against storms, and return habitat that has been lost to erosion and historic canalization.”
  • Preserving Coastal Wildlife: “Pecan Island and nearby wetlands are high-value habitat for migratory waterfowl, shorebirds, wading birds, and other coastal wildlife. SpaceX is not developing the full footprint of the land and will preserve wetlands and wildlife habitat. At existing launch sites, waterfowl and other birds continue to use nearby habitat during operations. Working with wildlife agencies, landowners, and conservation groups, SpaceX will support monitoring and management so this habitat stays productive and hunting, fishing, birding, and other recreational activities that are part of this coast’s culture can continue.”

SpaceX shares rose about 2.5 percent on the news.

Continue Reading