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By Ishika Dangayach, 4:30 PM ET
Elon Musk, CEO of Tesla,(TSLA) defended his involvement in the company's $2.6 billion acquisition of SolarCity in court on Monday, claiming there was no controlling pressure on the deal.
According to the complaint filed by union pension funds and asset managers, the celebrity CEO coerced Tesla's board into squandering the company's assets to purchase SolarCity, which was running out of cash. Musk had a 22 percent interest in both Tesla and SolarCity at the time.
Musk's testimony, which began just after 9:20 a.m. ET marked the beginning of what is anticipated to be a two-week trial in Wilmington, Delaware, before Vice Chancellor Joseph Slights in the Delaware Chancery court.
Musk reiterated in court he does not control Tesla and that he does not like being the electric car company's CEO as he defended the company's 2016 acquisition of SolarCity.
Musk stated that he has tried very hard not to be the CEO of Tesla, but I have to or frankly, Tesla is going to die, Reuters reported.
If Musk loses, he may face fines of up to $2 billion while if the plaintiffs prevail, the money may be directed to Tesla rather than the stakeholders who initiated the claim.
The trial will focus on whether Musk behaved in the best interests of Tesla stockholders or if he made and urged choices that primarily benefited himself, his family, and other firms he was engaged in, SolarCity and SpaceX.
Musk, who appeared in a black suit, a white button-down shirt, and a black-tie, testified that the acquisition was not a bailout. He also stated that he did not put any pressure on his other board members.
Shareholder counsel Randall Baron inquired if the board had reviewed his two master plans for Tesla or his Technoking title, which Musk bestowed upon himself in March.
“It generated a bunch of free press and Tesla doesn't advertise, so it's helpful to general sales,” he added of the odd moniker, which he described as a joke. “I think I'm funny.”
Tesla's master plans highlight the company's long-term objective of producing cheap automobiles powered by renewable energy sources.
Musk's sense of humor was also highlighted in court by Randy Baron, an attorney for the shareholders.
In addition, the CEO has a history of tense dealings with attorneys and federal authorities. That became obvious when Baron began cross-examining Musk. Baron began by playing excerpts from Musk's 2019 deposition, in which Musk repeatedly referred to the action as a waste of time and labeled Baron a shameful person.
“I think you are a bad human being,” Musk retorted. He said Baron was “mentored by criminals, then continued to be mentored by criminals.”
“That is why I do not respect you,” he said. “I have great respect for the court, but not for you, sir.”
The two reportedly argued about the length of Musk's responses, with Baron labeling them excessively long tales that were slowing down the day. Musk frequently avoided yes or no responses, claiming that they would be incomplete.
With inputs from CNBC