Elon Musk has proposed fusing electric vehicle Tesla Motors and solar panel company SolarCity, both of which are headed by Musk, prompting critics to wonder if the move would be ethical.
“This is something that we have been thinking about and debated for many years,” Musk, who recused himself from the vote, said in a call with reporters Tuesday. “But the timing seemed to be right now” because Tesla is attempting to accelerate production of Tesla batteries, as well as introduce new products for SolarCity.
The move to meld the two companies has all the earmarks of being a family affair.
Musk’s cousin, Lyndon Rive, is SolarCity’s chief executive officer ‚Äì Rive, who told reporters he would also be recusing himself from the “decision-making process,” said the offer represented a value of between $26.50 and $28.50 a share. “Ultimately, the shareholders will decide,” he added.
Yet, Kimbal Musk, Elon Musk’s brother, a director on the Tesla Motors Board of Directors, has yet to recuse himself from the voting process, despite the long history he and his brother have building Internet-based companies.