Telsa-Solar City merger delayed by shareholder lawsuits

Telsa Motor Inc. is facing new obstacles in its controversial merger with Solar City Corp.

Four lawsuits against the merger are being filed by shareholders. One of them features an injunction seeking to delay Tesla’s acquisition of Solar City, and could potentially put the transaction on pause until an Oct. 18 hearing, at the earliest, reportsBloomberg. 

{mosads}The lawsuits are only the latest roadblock for the merger plan. Critics of the deal question Solar City’s balance sheet, which is heavily reliant on borrowing. Given Telsa’s own proclivity to burn through cash, some argue the merged company might not be financially sustainable. 

Tesla’s CEO and founder Elon Musk has championed the merger with his Solar City as a part of his long-term plan to have Tesla control the energy that powers its cars. Solar City is run by Musk’s cousin, Lydon Rive.

The lawsuits were filed by individual Telsa shareholders P. Evan Stephens and Ellen Prasinos, as well as the City of Riviera Beach Pension Fund and the Arkansas Teacher Retirement System.

Both companies have indicated that they are still pursuing the merger.