Elon Musk is expected to defend a US$2.2 billion deal in court next week criticized by shareholders as benefiting Musk at the expense of Tesla Inc, and the outcome may depend as much on the chief executive's temperament as on the facts of the case.
This may be particularly true in Delaware's Court of Chancery, with roots in medieval England and known for its decorum.Smashing corporate norms has come to define Musk, who has a cult-like following for his ambitious vision, battles with short-sellers and disdain for"boring bonehead questions" from analysts.
Musk has countered that Tesla's stock has tripled since the deal, demonstrating its value. SolarCity has withered because its staff were redirected toward launching the Model 3 sedan, a make-or-break product for Tesla, not because the solar business lacked value, according to Musk. In contrast, at a defamation trial in December, Musk donned a dark suit, spoke softly on the witness stand, and apologized to the cave rescuer who sued Musk for calling him a"pedo guy" on Twitter.
"The big question is when you get an institution like him and an institution like the Court of Chancery, is it oil and water or is it mutual respect?" said Larry Hamermesh, a professor at Delaware Law School.
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