Elon Musk has expressed regret over Tesla Inc.'s 2016 purchase of SolarCity Corp., a report Wednesday morning by Bloomberg Businessweek said.
Analysts called the move a "catastrophe," according to the report.
Musk at the time defended the $2.9 billion acquisition of the company, saying it was "blindingly obvious" and a "no-brainer." But during a deposition related to a class-action shareholder lawsuit in June, Musk admitted his critics were right.
"At the time I thought it made strategic sense for Tesla and SolarCity to combine. Hindsight is 20-20," Musk said at the deposition. "If I could wind back the clock, you know, I would say [I] probably would have let SolarCity execute by itself."
Bloomberg Businessweek reported that court filings from the suit showed Jason Wheeler, Tesla's CFO at the time, raised concerns over the acquisition.
The filings also show conflicts of interests in the purchase, as Musk's cousins Lyndon and Peter Rive ran SolarCity. Six out of seven Tesla board directors, including Musk's brother, Kimbal, were associates of Musk who had SolarCity ties, the report said.
