Tesla Motors shareholders approve deal to acquire SolarCity
By: Annie Yager, Xiro Xone News November 17, 2016 Updated: 8:11 PM
Shareholders for SolarCity and Tesla approve merging the two companies, Thursday.
The acquisition makes SolarCity, which is the nation's largest manufacturer and installer of solar panels, a wholly owned subsidiary of Tesla. More than 85% of shares voted were cast in favor of the acquisition.
Shareholders of each company voted at their respective meetings. But the question was always whether investors in Tesla would approve a takeover of the embattled solar company.
“We would like to thank our shareholders for continuing to support our vision for the future,” Tesla said in a statement. “We look forward to showing the world what Tesla and SolarCity can achieve together.”
"We’re trying to make an integrated product, where you can go to Tesla store and just say yes," Musk said after the vote. "It's seamless and you love it,” said Musk.
Musk also said that the company expects to begin producing its new solar panels "in volume in the summer of next year, but the important thing is the apples-to-apples comparison to a regular roof." He said SolarCity panels could be priced at, or even slightly below, that of a regular roof, "and the electricity is just a bonus."
Under the terms of the transaction, SolarCity shareholders will receive 0.11 of a Tesla share for each share of SolarCity that they own. At Thursday’s closing prices, that offer is worth about $20.75 a share, or just shy of where SolarCity shares closed.
However, shares of Tesla have fallen about 14 percent since the company first disclosed its intentions. In after-hours trading on Thursday, shares of Tesla were little changed. Shares of SolarCity rose 2 percent in after-hours trading.
The company also plans to increase production tenfold to 500,000 units once the Model 3 comes on line, and it is in the process of building out a massive Gigafactory in the desert east of Reno, Nev., for the purpose of building both battery cells and, eventually, vehicles. The idea is that once Tesla can make its products at scale, profits will follow.