If the deal does fall through, Tesla is expected to increase their employee workforce to roughly 30,000 workers from its current approximate workforce of 15,000.
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“The potential is there for Tesla to be a $1 trillion market cap company if we play a major role in transitioning the world to a new form of energy generation, and storage and transport”, Musk told investors.
As a combined company, each business unit will work together to create fully-integrated solar power and battery-storage products for residential homes and commercial businesses, as well as full-scale grid projects.
The companies expect the merger will save $150 million in the first year after closing, which they say will happen later this year.
However, the initial offer was about $2.7 billion, which has sent shares for both companies down in early trading Monday – Tesla was down 0.4 percent and SolarCity fell 4.9 percent.
“We expect the transaction to close in the fourth quarter of 2016”, added Tesla.
As part of the agreement, SolarCity has a 45-day period known as a “go-shop”, which runs to 14 September 14, meaning SolarCity is allowed to solicit alternative proposals during that time.
Tesla has this week confirmed that the electric automotive company will buy SolarCity the solar panel installer for $2.6 billion.
Musk said if someone makes a better offer for SolarCity, he has committed to vote his shares with that offer.
SolarCity, based in San Mateo, Calif., was started in 2006 by brothers Peter and Lyndon Rive with help from Musk, their cousin. However, the agreed acquisition requires approval from a majority of shareholders of both companies.
Under the all-stock deal, SolarCity shareholders will receive 0.110 Tesla common shares per SolarCity share. The company imagines offering “one installation, one service contract, one phone app” to its customers. It won’t just be an electric vehicle company but a clean energy company.
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The deal was brokered by Evercore – for Tesla – and Lazard – for SolarCity. That doesn’t appear to have made Musk donate a rat’s ass, because, of course, the deal is going ahead.
