Does Elon Musk control Tesla, shareholders allege this

New Delhi. As soon as Elon Musk’s name is taken, Tesla automatically comes in people’s mind. People only know that the owner of Tesla company is Elon Musk. But questions are being raised on the reality of this whether Elon Musk controls Tesla or is Tesla controlled by him? In a case filed in a US court, this question is related to an amount of more than 2 billion dollars. Shareholders allege that Musk used his control over Tesla to save solar panel maker SolarCity from bankruptcy in 2016. Musk has investments in SolarCity.

Union pension funds and asset managers who filed the case want Tesla to pay $2.6 billion in deal costs on Musk’s behalf. If pension funds and asset managers win in this case, it will be one of the biggest decisions against an individual.

Is Musk the unique controlling shareholder who doesn’t have a majority stake?
A two-week hearing in Delaware’s court will decide whether Musk, who held about 22 percent of Tesla during the deal, is the only unique controlling shareholder who doesn’t have a majority stake. Tulan University Law School professor Ann Lipton said, “I think it would be very difficult for the court to ignore the reality of Elon Musk’s relationship with Tesla.” Due to their personal relationships with the board members and financial dealings of those board members with SolarCity, this matter can reach an unforeseen situation.

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Tesla’s business has grown rapidly in recent years
Tesla’s business, which is included in the world’s largest electric car companies, has grown rapidly in recent years. However, the company has also faced controversy in many countries including the US. Musk remains in the limelight for his outspoken remarks, mocking regulators and engaging with his nearly 57 million Twitter followers.

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