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

Elon Musk

SpaceX maintains unbelievable Starship target despite Booster 18 incident

It appears that it will take more than an anomaly to stop SpaceX’s march towards Starship V3’s refinement.

Published

on

Credit: SpaceX/X

SpaceX recently shared an incredibly ambitious and bold update about Starship V3’s 12th test flight. 

Despite the anomaly that damaged Booster 18, SpaceX maintained that it was still following the upgraded spacecraft and booster’s plans for the coming months. Needless to say, it appears that it will take more than an anomaly to stop SpaceX’s march towards Starship V3’s refinement. 

Starship V3 is still on a rapid development path

SpaceX’s update was posted through the private space company’s official account on social media platform X. As per the company, “the Starbase team plans to have the next Super Heavy booster stacked in December, which puts it on pace with the test schedule planned for the first Starship V3 vehicle and associated ground systems.” 

SpaceX then announced that Starship V3’s maiden flight is still expected to happen early next year. “Starship’s twelfth flight test remains targeted for the first quarter of 2026,” the company wrote in its post on X. 

Elon Musk mentioned a similar timeline on X earlier this year. In the lead up to Starshp Flight 11, which proved flawless, Musk stated that “Starship V3 is a massive upgrade from the current V2 and should be through production and testing by end of year, with heavy flight activity next year.” Musk has also mentioned that Starship V3 should be good enough to use for initial Mars missions.

Advertisement
-->

Booster 18 failure not slowing Starship V3’s schedule

SpaceX’s bold update came after Booster 18 experienced a major anomaly during gas system pressure testing at SpaceX’s Massey facility in Starbase, Texas. SpaceX confirmed in a post on X that no propellant was loaded, no engines were installed, and personnel were positioned at a safe distance when the booster’s lower section crumpled, resulting in no injuries.

Still, livestream footage showed significant damage around the liquid oxygen tank area of Booster 18, leading observers to speculate that the booster was a total loss. Booster 18 was among the earliest vehicles in the Starship V3 series, making the failure notable. Despite the setback, Starship V3’s development plans appear unchanged, with SpaceX pushing ahead of its Q1 2026 test flight target.

Continue Reading

News

Tesla Sweden faces fresh union blockade at key Gothenburg paint shop

Allround Lack works with painting and damage repair of passenger cars, including Teslas.

Published

on

(Credit: Tesla)

Tesla’s ongoing labor conflict in Sweden escalated again as the trade union IF Metall issued a new blockade halting all Tesla paintwork at Allround Lack in Gothenburg. 

Allround Lack works with painting and damage repair of passenger cars, including Teslas. It currently employs about 20 employees. 

Yet another blockade against Tesla Sweden

IF Metall’s latest notice ordered a full work stoppage for all Tesla-related activity at Allround Lack. With the blockade in place, paint jobs on Tesla-owned vehicles, factory-warranty repairs, and transport-damage fixes, will be effectively frozen, as noted in a report from Dagens Arbete. While Allround Lack is a small paint shop, its work with Tesla means that the blockade would add challenges to the company’s operations in Sweden, at least to some degree.

Paint shop blockades have been a recurring tool in the longstanding conflict. The first appeared in late 2023, when repair shops were barred from servicing Tesla vehicles. Days later, the Painters’ Union implemented a nationwide halt on Tesla paint work across more than 100 shops. Since then, a steady stream of workshops has been pulled into the conflict.

Earlier blockades faced backlash from consumers

The sweeping effects of the early blockades drew criticism from industry groups and consumers. Employers and industry organization Transportföretagen stated that the strikes harmed numerous workshops across Sweden, with about 10 of its members losing about 50% of their revenue.

Advertisement
-->

Private owners also expressed their objections. Tibor Blomhäll, chairman of Tesla Club Sweden, told DA in a previous statement that the blockades from IF Metall gave the impression that the union was specifically attacking consumers. “If I get parking damage to my car, I pay for the paint myself. The company Tesla is not involved in that deal at all. So many people felt singled out, almost stigmatized. What have I done as a private individual to get a union against me?” Blomhäll stated. 

In response to these complaints, IF Metall introduced exemptions, allowing severely damaged vehicles to be repaired. The union later reopened access for private owners at workshops with collective agreements. The blockades at the workshops were also reformulated to only apply to work that is “ordered by Tesla on Tesla’s own cars, as well as work covered by factory warranties and transport damage on Tesla cars.”

Continue Reading

News

Tesla breaks Norway’s all-time annual sales record with one month to spare

With November alone delivering 4,260 new registrations, Tesla has cemented its most dominant year ever in one of Europe’s most mature EV markets.

Published

on

Credit: Grok Imagine

Tesla shattered Norway’s decade-old annual sales record this month, overtaking Volkswagen’s long-standing milestone with over one month still left in the year. Backed by surging demand ahead of Norway’s upcoming VAT changes, Tesla has already registered 26,666 vehicles year-to-date, surpassing Volkswagen’s 2016 record of 26,572 units. 

With November alone delivering 4,260 new registrations month-to-date, Tesla has cemented its most dominant year ever in one of Europe’s most mature EV markets.

Model Y drives historic surge in Norway

Tesla’s impressive momentum has been led overwhelmingly by the Model Y, which accounted for 21,517 of Norway’s registrations this year, as noted in a CarUp report, citing data from Elbil Statistik. The Model 3 followed with 5,087 units, while the Model S and Model X contributed 30 and 19 vehicles, respectively. Even the parallel-imported Cybertruck made the charts with 13 registrations.

Demand intensified sharply through autumn as Norwegian buyers rushed to secure deliveries before the country’s VAT changes take effect in January. The new regulation is expected to add roughly NOK 50,000 to the price of a Model Y, prompting a wave of early purchases that helped lift Tesla beyond the previous all-time record well before year-end. 

With December still ahead, Tesla is positioned to extend its historic lead further. Needless to say, it appears that Norway will prove to be one of Tesla’s strongest markets in Europe. 

Advertisement
-->

FSD could be a notable demand driver in 2026

What’s especially interesting about Tesla’s feat in Norway is that the company’s biggest selling point today, Full Self-Driving (Supervised), is not yet available there. Tesla, however, recently noted in a post on X that the Dutch regulator RDW has reportedly committed to issuing a Netherlands national approval for FSD (Supervised) in February 2026

The RDW posted a response to Tesla’s post, clarifying the February 2026 target but stating that FSD’s approval is not assured yet. “The RDW has drawn up a schedule with Tesla in which Tesla is expected to be able to demonstrate that FSD Supervised meets the requirements in February 2026. RDW and Tesla know what efforts need to be made to make a decision on this in February. Whether the schedule will be met remains to be seen in the coming period,” the RDW wrote in a post on its official wesbite.

If FSD (Supervised) does get approved next year, Tesla’s vehicles could gain a notable advantage over competitors, as they would be the only vehicles on the market capable of driving themselves on both inner-city streets and highways with practically no driver input. 

Continue Reading