Volkswagen’s rival to Tesla’s Model S is slated to be unveiled at this year’s Paris motor show in October, as per company chairman Herbert Diess, who also teased that the vehicle will be as spacious as a Passat on the inside, but will be as compact as the company’s small family auto, the Volkswagen Golf, on the outside. The US Federal Trade Commission approved the deal after the bid was fast tracked for approval after regulators claimed the companies having little to no overlaps.
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Shareholders in Solar City will receive 0.11 shares of Tesla stock for every share they own in the company, Tesla CEO Elon Musk is a major shareholder in Solar City.
In a press statement announcing the merge, Tesla said: “Solar and storage are at their best when they’re combined”.
Called the P100D battery pack, Tesla introduces the company’s first third-generation battery pack for production vehicles.
Interestingly, Tesla has meant to provide solar power since Musk laid out the company’s “Secret Master Plan” 10 years ago. Two cars are faster, a Ferrari and a Porsche, but are sports models, Mr. Musk said Tuesday.
The next hurdle is a vote by the disinterested shareholders of the two companies, which will exclude the shares held by Musk and other executives. This go-shop period ends in the middle of September. Having built a $3.25 billion cash position helped by the company’s raise of $1.7 billion earlier in the year, Tesla will need to expertly balance its capital expenditure, as it continues to build vehicles and sustain its auto business, with capital allocation towards new development and growth.
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However, the deal has met with skepticism from investors. The Motley Fool has a disclosure policy.
