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.” 

Advertisement
-->

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

News

Tesla’s six-seat extended wheelbase Model Y L sold out for January 2026

Estimated delivery dates for new Tesla Model Y L orders now extend all the way into February 2026.

Published

on

Credit: Tesla China

The Tesla Model Y L seems to be in high demand in China, with estimated delivery dates for new orders now extending all the way into February 2026. 

This suggests that the Model Y L has been officially sold out from the rest of 2025 to January 2026. 

Model Y L estimated delivery dates

The Model Y L’s updated delivery dates mark an extension from the vehicle’s previous 4-8 week estimated wait time. A detailed chart shared by Tesla data tracker @Tslachan on X shows the progressions of the Model Y L’s estimated delivery dates since its launch earlier this year. 

Following its launch in September, the vehicle was given an initial October 2025 estimated delivery date. The wait times for the vehicle were continually updated over the years, until the middle of November, when the Model Y L had an estimated delivery date of 4-8 weeks. This remained until now, when Tesla China simply listed February 2026 as the estimated delivery date for new Model Y L orders.

Model Y demand in China

Tesla Model Y demand in China seems to be very healthy, even beyond the Model Y L. New delivery dates show the company has already sold out its allocation of the all-electric crossover for 2025. The Model Y has been the most popular vehicle in the world in both of the last two years, outpacing incredibly popular vehicles like the Toyota RAV4. In China, the EV market is substantially more saturated, with more competitors than in any other market.

Advertisement
-->

Tesla has been particularly kind to the Chinese market, as it has launched trim levels for the Model Y in the country that are not available anywhere else, such as the Model Y L. Demand has been strong for the Model Y in China, with the vehicle ranking among the country’s top 5 New Energy Vehicles. Interestingly enough, vehicles that beat the Model Y in volume like the BYD Seagull are notably more affordable. Compared to vehicles that are comparably priced, the Model Y remains a strong seller in China. 

Continue Reading

Elon Musk

NVIDIA CEO Jensen Huang commends Tesla’s Elon Musk for early belief

“And when I announced DGX-1, nobody in the world wanted it. I had no purchase orders, not one. Nobody wanted to buy it. Nobody wanted to be part of it, except for Elon.”

Published

on

Credit: NVIDIA

NVIDIA CEO Jensen Huang appeared on the Joe Rogan Experience podcast on Wednesday and commended Tesla CEO Elon Musk for his early belief in what is now the most valuable company in the world.

Huang and Musk are widely regarded as two of the greatest tech entrepreneurs of the modern era, with the two working in conjunction as NVIDIA’s chips are present in Tesla vehicles, particularly utilized for self-driving technology and data collection.

Nvidia CEO Jensen Huang regrets not investing more in Elon Musk’s xAI

Both CEOs defied all odds and created companies from virtually nothing. Musk joined Tesla in the early 2000s before the company had even established any plans to build a vehicle. Jensen created NVIDIA in the booth of a Denny’s restaurant, which has been memorialized with a plaque.

On the JRE episode, Rogan asked about Jensen’s relationship with Elon, to which the NVIDIA CEO said that Musk was there when nobody else was:

“I was lucky because I had known Elon Musk, and I helped him build the first computer for Model 3, the Model S, and when he wanted to start working on an autonomous vehicle. I helped him build the computer that went into the Model S AV system, his full self-driving system. We were basically the FSD computer version 1, and so we were already working together.

And when I announced DGX-1, nobody in the world wanted it. I had no purchase orders, not one. Nobody wanted to buy it. Nobody wanted to be part of it, except for Elon.

He goes ‘You know what, I have a company that could really use this.’ I said, Wow, my first customer. And he goes, it’s an AI company, and it’s a nonprofit and and we could really use one of these supercomputers. I boxed one up, I drove it up to San Francisco, and I delivered it to the Elon in 2016.”

The first DGX-1 AI supercomputer was delivered personally to Musk when he was with OpenAI, which provided crucial early compute power for AI research, accelerating breakthroughs in machine learning that underpin modern tools like ChatGPT.

Tesla’s Nvidia purchases could reach $4 billion this year: Musk

The long-term alliance between NVIDIA and Tesla has driven over $2 trillion in the company’s market value since 2016.

Continue Reading

Elon Musk

GM CEO Mary Barra says she told Biden to give Tesla and Musk EV credit

“He was crediting me, and I said, ‘Actually, I think a lot of that credit goes to Elon and Tesla…You know me, Andrew. I don’t want to take credit for things.”

Published

on

General Motors CEO Mary Barra said in a new interview on Wednesday that she told President Joe Biden to credit Tesla and its CEO, Elon Musk, for the widespread electric vehicle transition.

She said she told Biden this after the former President credited her and GM for leading EV efforts in the United States.

During an interview at the New York Times Dealbook Summit with Andrew Ross Sorkin, Barra said she told Biden that crediting her was essentially a mistake, and that Musk and Tesla should have been explicitly mentioned (via Business Insider):

“He was crediting me, and I said, ‘Actually, I think a lot of that credit goes to Elon and Tesla…You know me, Andrew. I don’t want to take credit for things.”

Back in 2021, President Biden visited GM’s “Factory Zero” plant in Detroit, which was the centerpiece of the company’s massive transition to EVs. The former President went on to discuss the EV industry, and claimed that GM and Barra were the true leaders who caused the change:

“In the auto industry, Detroit is leading the world in electric vehicles. You know how critical it is? Mary, I remember talking to you way back in January about the need for America to lead in electric vehicles. I can remember your dramatic announcement that by 2035, GM would be 100% electric. You changed the whole story, Mary. You did, Mary. You electrified the entire automotive industry. I’m serious. You led, and it matters.”

People were baffled by the President’s decision to highlight GM and Barra, and not Tesla and Musk, who truly started the transition to EVs. GM, Ford, and many other companies only followed in the footsteps of Tesla after it started to take market share from them.

Elon Musk and Tesla try to save legacy automakers from Déjà vu

Musk would eventually go on to talk about Biden’s words later on:

They have so much power over the White House that they can exclude Tesla from an EV Summit. And, in case the first thing, in case that wasn’t enough, then you have President Biden with Mary Barra at a subsequent event, congratulating Mary for having led the EV revolution.”

In Q4 2021, which was shortly after Biden’s comments, Tesla delivered 300,000 EVs. GM delivered just 26.

Continue Reading