Tesla’s stockholders have given the electric car company’s $2.86-billion all-shares bid for energy services firm SolarCity the green light.
The Summit 2013 – Picture by Dan Taylor / Heisenberg Media – www.heisenbergmedia.com
The deal, described by Tesla CEO Elon Musk as a “no-brainer,” received more than 85 percent approval from investors.
“Tesla’s shareholders have overwhelmingly approved our acquisition of SolarCity,” reads a Tesla press release.“Excluding the votes of Elon and other affiliated shareholders, more than 85 percent of shares voted were cast in favor of the acquisition. With SolarCity’s shareholders also having approved the acquisition, the transaction will be completed in the coming days. We would like to thank our shareholders for continuing to support our vision for the future. We look forward to showing the world what Tesla and SolarCity can achieve together.”
Musk has said Tesla would be able to sell its customers an electric car, a home battery and a solar system all-in-one go once the deal is finalized. In August, he discussed the possibility of making and selling roofs made out of solar cells, targeting a new customer market.
“If your roof is nearing end-of-life, you definitely don’t want to put solar panels on it, because you’re going to have to replace the roof. So, there is a huge market segment that is currently inaccessible to SolarCity, because people know they’re going to have to replace their roof, you don’t want to put solar panels on top of a roof you’re going to replace,” he said.
“We don’t want to show all of our cards right now, but I think people are going to be really excited about what they see. And the cool thing is that it doesn’t cannibalize the existing business, because you got two classes of customers – like, customers that where their roof is nearing end-of-life and customers where they’ve just put in a new roof.”
Musk, who is the largest shareholder of SolarCity, will pocket as much as $632 million in Tesla shares once the deal goes through. SolarCity, which was founded by Musk’s cousins Lyndon and Peter Rive, would reap roughly $65 million each in shares.
Jennifer Cowan is the Managing Editor for SiteProNews.
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