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SolarCity Recuses Two More Board Members From Voting on Tesla Offer

<h1>Elon Musk </h1>
Musk may be the world's busiest man. He is co-founder and CEO of electric car maker Tesla, founder and CEO of rocket company SpaceX, and the chairman of solar power provider SolarCity. And still, he's tacking on projects. This year, Musk unveiled a much-hyped proposal for urban transit that he called the Hyperloop, which he said would be able to transport passengers from Los Angeles to San Francisco in just 30 minutes, at 350 miles per hour. He also showed off a prototype for a computer program that you can control by simply moving your hands (a la the<a href="http://www.youtube.com/watch?v=xNqs_S-zEBY" title="" target="_blank"> "Iron Man" movies</a>) . Far-fetched? Sure. But so was the idea that an electric car company could be profitable, and Musk's Tesla managed that this year. Still too soon to say about his plans to <a href="http://www.teslamotors.com/fr_FR/forum/forums/self-driving-tesla-vehicles-and-family-plans" title="" target="_blank">get that car to drive itself</a>, though.  <h1>Elon Musk </h1>
Musk may be the world's busiest man. He is co-founder and CEO of electric car maker Tesla, founder and CEO of rocket company SpaceX, and the chairman of solar power provider SolarCity. And still, he's tacking on projects. This year, Musk unveiled a much-hyped proposal for urban transit that he called the Hyperloop, which he said would be able to transport passengers from Los Angeles to San Francisco in just 30 minutes, at 350 miles per hour. He also showed off a prototype for a computer program that you can control by simply moving your hands (a la the<a href="http://www.youtube.com/watch?v=xNqs_S-zEBY" title="" target="_blank"> "Iron Man" movies</a>) . Far-fetched? Sure. But so was the idea that an electric car company could be profitable, and Musk's Tesla managed that this year. Still too soon to say about his plans to <a href="http://www.teslamotors.com/fr_FR/forum/forums/self-driving-tesla-vehicles-and-family-plans" title="" target="_blank">get that car to drive itself</a>, though.
<h1>Elon Musk </h1> Musk may be the world's busiest man. He is co-founder and CEO of electric car maker Tesla, founder and CEO of rocket company SpaceX, and the chairman of solar power provider SolarCity. And still, he's tacking on projects. This year, Musk unveiled a much-hyped proposal for urban transit that he called the Hyperloop, which he said would be able to transport passengers from Los Angeles to San Francisco in just 30 minutes, at 350 miles per hour. He also showed off a prototype for a computer program that you can control by simply moving your hands (a la the<a href="http://www.youtube.com/watch?v=xNqs_S-zEBY" title="" target="_blank"> "Iron Man" movies</a>) . Far-fetched? Sure. But so was the idea that an electric car company could be profitable, and Musk's Tesla managed that this year. Still too soon to say about his plans to <a href="http://www.teslamotors.com/fr_FR/forum/forums/self-driving-tesla-vehicles-and-family-plans" title="" target="_blank">get that car to drive itself</a>, though. Courtesy of Tesla

Two additional SolarCity board members with ties to Elon Musk are recusing themselves from making decisions regarding Tesla Motors’s offer to buy the solar power company, in a bid to alleviate corporate governance concerns surrounding a potential deal.

The new recusals mean the majority of SolarCity’s board will be sitting out the decision on whether to be acquired by Tesla.

Peter Rive, who is the cousin of Tesla chief executive and SolarCity chairman Musk, along with JB Straubel, chief technology officer and co-founder of Tesla, are both recusing themselves from the decision-making process, SolarCity spokesman Jonathan Bass said in a statement emailed to Reuters late on Friday.

For more on SolarCity and Tesla, watch:

did not immediately respond to a request for comment.

Tesla Changed Bylaws to Ward Off SolarCity Shareholder Fight

SolarCity (SCTY) will form a special independent committee of the board, which will have independent counsel, Bass said.

“Only board members who meet the requirements for independence will be involved in the decision-making process at SolarCity,” he added.

Musk has described a tie-up between Tesla and SolarCity as a “no brainer.” The company could sell customers an electric car, a home battery and a solar system all at once, he said.

Why Tesla and SolarCity Have an Elon Musk Problem

But investors, including some who short the stocks, betting that shares will fall, point to the conflict of interest and the risk of uniting two money-losing companies which both regularly raise cash to support expansion.

Since Tesla announced its offer to buy SolarCity in a deal worth $2.8 billion last Tuesday, analysts and investors have been concerned that the electric car firm’s growth plan carries a financial burden and additional debt it cannot afford.

SolarCity shares have fallen more than 50% this year in a highly competitive market, fanning criticism that a Tesla deal was meant to save SolarCity.