Read Elon Musk's wildest remarks in court, as he says Tesla would die without him and that naming himself 'technoking' drove sales

Read Elon Musk’s wildest remarks in court, as he says Tesla would die without him and that naming himself ‘technoking’ drove sales

Elon Musk appeared in court on Monday to defend Tesla’s acquisition of SolarCity in 2016.

Things got testy between Musk and the plaintiffs' attorney.

Musk said he hates running Tesla and could have worked on Wall Street.

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Elon Musk took the stand on Monday to defend Tesla’s 2016 acquisition of a struggling solar firm founded by his cousins. It went about as smoothly as you’d expect a five-hour testimony from an outspoken billionaire with practically no filter would go.

That is to say, things got off-topic and, at some points, pretty testy.

A group of Tesla shareholders is suing Musk over the purchase of SolarCity, alleging that his role as its chairman and largest shareholder presented a conflict of interest. They claim that Musk pressured Tesla’s board into greenlighting the $2.6 billion purchase and want Musk to pay back $2 billion to the electric-vehicle maker.

Other members of the board have already settled to the tune of $60 million.

Musk maintains that he did not exert any influence over the board as it made the decision and pushed back against claims that it was a bailout, multiple outlets reported. He also reiterated that the deal was a stock-for-stock transaction that didn’t benefit him financially and that it was always part of Tesla’s plan to move beyond electric-vehicle production into clean-energy solutions.

Still, much of the day saw Musk sparring with the shareholders' main attorney, Randy Baron, and giving meandering answers that got off-topic. Here are five of the most notable moments:

Musk “hates” running Tesla

Musk at one point said he doesn’t want to be Tesla’s CEO but fears that the company would falter without him.

“I tried very hard not to be the CEO of Tesla, but I have to or frankly Tesla is going to die,” Musk said, according to Bloomberg. “I rather hate being a boss. I’m an engineer.”

Musk, who also serves as CEO of SpaceX, a rocket firm he founded, has said similar things before. Tesla itself acknowledges in regulatory filings that it relies heavily on Musk and that it would be in a tough spot if he left the company.

“I think you are a bad human being.”

Sparks flew between Musk and Baron, the plaintiffs' lawyer, in pre-trial depositions. Monday was no exception.

Asked why he was being “derisive” in his deposition, Musk retorted by pointing out a history of criminal activity at a law firm Baron used to work at.

“You were mentored by criminals,” Musk said, according to Bloomberg. “Then you continued to be mentored by criminals and that is why I do not respect you. I think you are a bad human being.”

Read more: A couple says their Tesla Solar panels caused relentless leaks that led to mold 10 times the healthy limit, $115,000 in damages, and a long-running legal battle

“I think I’m funny.”

Baron asked if Tesla’s board approved Musk’s title change to Technoking in March, and Musk responded that it was a joke that was aimed at getting the carmaker free press. The company has no advertising budget, and Musk is known for leaning into memes and internet culture.

“It generated a whole bunch of free press and Tesla doesn’t advertise and it’s helpful to general sales,” he said, per Reuters.

“I think I’m funny,” Musk added.

Musk denied “rage-firing” anyone.

Pushing back against claims that he ousts employees in fits of rage, Musk said that he only gives “clear and frank feedback which may be construed as derision,” according to Bloomberg.

Tesla is notorious for its high executive turnover, and there have been reports that Musk goes on wild firing rampages. Tesla has refuted those claims.

“I was offered several high-paid jobs on Wall Street.”

In another timeline, Musk could have worked in finance, he told the court on Monday.

“I was offered several high-paid jobs on Wall Street,” Musk said, per Bloomberg. “I declined.”

Musk didn’t say where he could have worked. But, with a net worth close to $200 billion, he has made out well for himself anyway.

Musk tells SolarCity trial that Tesla would ‘die’ if he wasn’t CEO

Tesla CEO Elon Musk reacts to onlookers as he departs after taking the stand to defend Tesla Inc’s 2016 deal for SolarCity in a case before the Delaware Court of Chancery in Wilmington, Delaware, U.S. July 12, 2021. REUTERS/Jonathan Ernst

WILMINGTON, Del., July 12 (Reuters) - Elon Musk insisted in court that Tesla Inc’s(TSLA.O)board controls the company but also said the electric vehicle maker would “die” if he wasn’t the chief executive, as he ended his first day of testimony on Monday in defense of Tesla’s 2016 acquisition of SolarCity.

The lawsuit by union pension funds and asset managers alleges the celebrity CEO strong-armed Tesla’s board of directors into depleting the company’s assets with the $2.6 billion all-stock deal for SolarCity.

The CEO at the time owned a roughly 22% stake in both Tesla and SolarCity, which was founded by his cousins, and some Tesla shareholders alleged the deal was aimed at bailing out Musk’s investment in the solar panel company.

Kicking off a two-week trial in Wilmington, Delaware, Musk, wearing a dark suit, white shirt and a slightly askew dark tie, testified that he has tried “very hard not to be the CEO of Tesla, but I have to or frankly Tesla is going to die.”

Board members and others involved in the deal will testify beginning as soon as Tuesday, when Musk will also return to the witness stand.

The lawsuit accuses Musk of dominating the board’s deal discussions, pushing Tesla to pay more for SolarCity and misleading shareholders about the company’s deteriorating financial health.

Musk told the court that the Tesla board handled the SolarCity deal and he was not part of the board committee that negotiated the terms.

“I don’t even know what happened,” he testified.

Musk responded calmly during cross-examination from shareholder attorney Randall Baron, but Baron’s yes or no questions often elicited lengthy, meandering responses. At one point Musk called the lawyer “a bad human being.”

Baron asked if the board vetted his Technoking title, which he gave himself in March.

“It generated a whole bunch of free press and Tesla doesn’t advertise and it’s helpful to general sales,” he said. He called the title a joke: “I think I’m funny.”

Shares of Tesla closed up about 4.4% on Monday at $685.75.

Central to the case are claims that despite his minority stake, Musk was a controlling shareholder of Tesla due to his ties to board members and domineering style. That designation would impose a tougher legal standard and increase the likelihood that the court would conclude the deal was unfair to shareholders.

Shareholders have asked the court to order Musk, one of world’s richest people, to repay to Tesla what it spent on the deal.

Musk was initially questioned for about an hour by his attorney, Evan Chesler, who asked him to describe his relationship with the board.

“I’d say good,” Musk replied. “They work hard and are competent. They provide good advice and are rigorous in acting on behalf of shareholders.”

He said he did not set pay for directors or have the ability to fire or hire them. He also said that because he owned the same percentage of stock in both companies and there was no cash involved in the deal, he didn’t benefit. He said the merger was aimed at combining Tesla’s battery business with SolarCity’s sustainable energy generation.

“There was no financial gain,” he testified.

Legal experts said the judge will be looking for evidence that Musk threatened board members or that directors felt they could not stand up to him.

“It would be a surprise to most people if the court were to come out and say that he doesn’t control here,” said Brian Quinn, a professor at Boston College Law School. “Because he certainly acts like he does.”

Tesla’s directors settled allegations from the same lawsuit last year for $60 million, paid by insurance, without admitting fault.

Delaware Court of Chancery Vice Chancellor Joseph Slights will likely take months before he issues a ruling.

Reporting by Tom Hals in Wilmington, Delaware; Editing by Noeleen Walder, Daniel Wallis, Andrea Ricci and Sonya Hepinstall

Our Standards: The Thomson Reuters Trust Principles.

Elon Musk says he ‘hates’ being the CEO of Tesla

Tesla chief executive Elon Musk has said that he “hate[s]” running the electric car company, but says that it would “die without him”.

Mr Musk made the comments during his appearance in court, defending Tesla’s purchase of SolarCity in 2016 which was owned by his two cousins, Lyndon and Peter Rive, at the time. It is alleged that this was a conflict of interest; Mr Musk owned a 22 per cent stake in the company at the time.

When asked about his role as CEO, Mr Musk said: “I rather hate it and I would much prefer to spend my time on design and engineering, which is what intrinsically I like doing”, as reported by the Wall Street Journal, adding: “I don’t want to be the boss of anything.”

Mr Musk also said that if he was not the CEO of the company, “frankly Tesla is going to die”. Such questioning is key to the trial, as the lawsuit accuses Mr Musk of dominating the board’s deal discussions, pushing Tesla to pay more for SolarCity and misleading shareholders about the company’s deteriorating financial health.

In the Delaware Court of Chancery on Monday, Baron sought to establish that Mr Musk has sought to run Tesla without interference and therefore bears responsibility for any failures.

The lawyer showed a video clip in which Mr Musk said he liked running his own companies because he doesn’t want anyone to make him do what he doesn’t want to do. As an example of what he characterised as Musk‘s imperious management style, Baron mentioned that the CEO once declared himself “Technoking of Tesla” and gave his chief financial officer the title “master of coin” – a reference to HBO’s Game of Thrones – in a filing with the Securities and Exchange Commission.

Mr Musk also said his off-beat titles and other quips simply reflect his sense of humour. “I think I’m funny,” he offered. The resulting media attention often plays to Tesla’s benefit, he said. “If we’re entertaining, people will write stories about us, and the company can save on advertising.”

The trial that began Monday marks the culmination of seven shareholder lawsuits, consolidated into one, that alleged that Tesla directors breached their fiduciary duties in bowing to Mr Musk‘s wishes and agreeing to buy SolarCity. Last August, a judge approved a $60 million (£43 million) settlement that resolved claims made against all the directors on Tesla’s board except Mr Musk without any admission of fault. That left Mr Musk, who refused to settle, as the sole remaining defendant.

The trial had originally been scheduled for March of last year but was postponed because of the coronavirus pandemic. Daniel Ives, an analyst at Wedbush Securities, has called the acquisition a “clear black eye” for Mr Musk and Tesla, in large part because SolarCity has failed to turn a profit.

“It basically was putting good money after bad,” Mr Ives said. “For all the successes and all of the unimaginable heights Musk has achieved, this is one of the lowlights.”

Additional reporting by agencies