As far as the investor view is concerned, Mr. Musk is in contact with major shareholders of Tesla and said that the wee informed investors have already given a green signal to the deal. Mr. Musk is expected to reveal details about the proposed “masterplan” any time soon.
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Last month, Tesla proposed to buy SolarCity for $2.5-$3 billion.
As per the CEO, this merger will create a company that will have more than 30,000 employees with all product offerings under renamed Tesla that will provide electric cars along with battery packs and solar panels. By doing so it lowers its cost of financing for SRECs. He added that he has yet to “talk to an investor after I have fully explained the situation and not had them support it”.
He added, “Most just didn’t understand how bringing together a auto and a solar company made sense from a product standpoint”.
Many analysts are concerned that this deal may only increase complexities for the automaker as it adds an unprofitable operation.
Since the start of the year, SolarCity’s capital markets team has raised more than Dollars 1.5 billion in project financing. Following the initial deal announcement, Tesla stock dropped 10%.
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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.
