Tesla shareholders urge judge to make Musk pay $13B for SolarCity deal

• The lawsuit alleges that Musk coerced board into approving deal for insolvent SolarCity

• Tesla stock fell 1% at around $1,040 in afternoon trade

Shareholders of electric vehicle giant Tesla Inc (NYSE: TSLA) urged a judge on Tuesday to make chief executive Elon Musk pay $13 billion for coercing company’s board into a deal for SolarCity in 2016.

"This case has always been about whether the acquisition of SolarCity was a rescue from financial distress, a bailout, orchestrated by Elon Musk," Randy Baron, an attorney for shareholders, told the Zoom hearing.

The lawsuit filed by union pension funds and asset managers alleges that Musk coerced board into approving deal for insolvent SolarCity.

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Elon Musk is the top shareholder of SolarCity.

One of the lawyers of Musk, Evan Chesler said that SolarCity was not insolvent as its finances were similar to many high-growth tech companies.

"They were building billions of dollars of long-term value," Chesler said of SolarCity.

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The deal, which was an all-stock deal, valued at $2.6 billion in 2016. Tesla’s stock has soared since then.

Shareholder attorney urged to order Musk to return the Tesla stock he received—worth around $13 billion at its current price.

Tesla stock fell 1% at around $1,040 in afternoon trade.

Picture Credits: Reuters