WILMINGTON — Elon Musk is anticipated to take the stand on Monday to defend Tesla Inc.’s 2016 acquisition of SolarCity in opposition to a lawsuit by shareholders in the hunt for to recoup the $2.6 billion the company paid for the ailing picture voltaic panel maker.

His testimony will kick off a two-week trial in Wilmington, Del., sooner than Vice Chancellor Joseph Slights, who will resolve whether or not or not the SolarCity deal was sincere to Tesla stockholders.

The lawsuit by union pension funds and asset managers alleges the celeb CEO strong-armed Tesla’s board to buy SolarCity, just because it was about to run out of cash. Musk owned a 22 p.c stake in SolarCity, which was primarily based by his cousins.

Shareholders requested the courtroom to order Musk, one in every of world’s richest of us, to repay to Tesla what it spent on the deal, which could characterize certainly one of many largest judgments ever in opposition to an individual. Nonetheless, even when the select finds the deal was unfair, he might award a so much lower amount of damages.

Musk has argued the deal was sincere and that it was negotiated by the Tesla board free of his have an effect on and approved by completely educated stockholders.

He touted the deal on the time as central to his “Grasp Plan, Half Deux,” which targets to reshape transportation by the usage of sustainable energy to power fleets of self-driving electrical vehicles.

Approved consultants acknowledged the select will possible be in the hunt for proof that Musk threatened board members or that directors felt they won’t stand as a lot as him.

The shareholders’ lawsuit accuses Musk of dominating deal discussions, pushing Tesla to pay additional for SolarCity and misleading shareholders in regards to the deteriorating financial properly being of the picture voltaic panel maker.

Central to the case will possible be allegations that Musk, who had a 22 p.c stake in Tesla on the time, was nonetheless a controlling shareholder. If he was, it’ll impose a tougher approved regular and enhance the likelihood the deal was unfair to shareholders.

“It will likely be a shock to most people if the courtroom have been to return out and say that he doesn’t administration proper right here,” acknowledged Brian Quinn, a professor at Boston College Laws School. “On account of he undoubtedly acts like he does.”

Musk is anticipated to be questioned by shareholder lawyer Randy Baron, who Musk known as “reprehensible” at a testy 2019 deposition all through which he moreover accused Baron of attacking sustainable energy, in response to a transcript.

When Baron requested if Musk bailed out SolarCity, Musk replied: “You are a shameful explicit individual.”

Tesla’s directors settled allegations from the similar lawsuit ultimate yr for $60 million, paid by insurance coverage protection, with out admitting fault.

Slights will seemingly take months sooner than he factors a ruling.