Lawsuits Threaten to Delay Merger Between Tesla and SolarCity
When Tesla Motors first announced its intent to acquire SolarCity in a deal worth $2.6 billion, Tesla CEO Elon Musk wrote to shareholders explaining his plans and said in his opinion that the proposed merger would be good for both companies.
Tesla and SolarCity have finalized their proposed merger agreement pending approval from shareholders and gained regulatory approval from the Securities and Exchanges Commission for the deal to go ahead.
Not everyone agreed and now Tesla has been served with four different lawsuits from shareholders unhappy about the merger.
With a preliminary date of October 18th set for the court hearings, Tesla's merger with SolarCity is likely to be delayed a little while longer. And that can only be bad news for both companies.