According to Business Insider, Musk made the surprising pronouncement after 85% of Tesla shareholders approved a $2 billion merger with solar-energy specialist SolarCity on Thursday.
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Tesla and SolarCity shareholders voted in favor of the $2 billion deal Thursday.
SolarCity and Tesla shares were up for the day in after-hours trading. “We look forward to showing the world what Tesla and SolarCity can do together”.
Tesla General Counsel Todd Maron announced the approval shortly after a special shareholders meeting, held for the objective of voting on the merger, began, according to Electrek.
Two of Elon Musk’s projects are about to become one, as Tesla’s shareholders have “overwhelmingly approved” the proposed acquisition of SolarCity, CNBC reports. Musk said. “That’s looking really promising, and I think there’s even room for improvement beyond there”. “It’s really going to be an fantastic something that comes out”. And CEO Elon Musk didn’t take long to make his first big announcement as head of this new enterprise.
The combined companies would target homeowners in a bid to sell Tesla’s all-electric vehicles, solar panels and batteries, enabling customers to power their cars and homes with clean energy.
Tesla’s solar roofs are expected to hit the market in 2017. So you have an integrated solar roof with a Powerwall and an electric auto, and you just go into a Tesla store, just say yes, it just happens.
As of September 30, SolarCity had $259.3 million in cash and cash equivalents and $6.68 billion in total liabilities, including debt.
It is unclear if shareholder lawsuits have all been resolved, however analysts do not expects these to stop the deal. It is rating the stock as underweight and has a price target of $165 a share. It is now investing billions to build a battery factory and produce the Model 3, its first mainstream electric auto.
Furthermore there are fears that USA president-elect Donald Trump will complete an initiative to strip away government grants for electric vehicles, which have permitted the firm to contest better on price against petrol and diesel cars.
Palo Alto, California-based Tesla recently posted its first quarterly profit in more than three years, reporting third quarter net income of $21.9 million.
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Musk and two other Tesla directors who sit on SolarCity’s board recused themselves from the vote, but that didn’t stop some shareholders from suing. SolarCity shares rose a penny to $19.83, down from $26.40 in June.
