On November 17, shareholders of electric car company Tesla Motors Inc. (NASDAQ:TSLA) and solar panel manufacturer SolarCity Corp. (NASDAQ:SCTY) approved the buzzworthy deal to combine the two companies. It’s well known that Tesla CEO Elon Musk—Musk will also assume the role of Chief Executive of the new company—wants to create an integrated energy super-company, and the deal gets him one step closer to his ultimate goal.
The carmaker said that over 85% of shareholders voted in favor of the merger, and the transaction is set to 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,” Tesla commented.
Under the terms of the deal, SolarCity shareholders will get 11 cents of a Tesla share for every share of SolarCity that they own. At the closing price of November 17, that offer is valued at roughly $20.75 per share, or just under what SCTY stock closed at. The acquisition will cost Tesla about $2 billion.
Musk made two additional announcements after the acquisition voting results. Tesla’s solar roof tiles, which the company announced last month, will cost less than conventional roofs, even before energy tax credits and energy cost savings. Musk has boasted that the Tesla solar roof tiles will also look better and weigh less than current models.
The CEO also clarified earlier statements about its low-cost Model 3’s access to Supercharging stations. The highly-anticipated electric car will come with “free long-distance charging,” but will not have free Supercharging access forever.
TSLA has lost over 15% in value year-to-date, while SCTY is down over 61%.
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