Tesla: $ 2 billion SolarCity Deal
Tesla Motors Inc. , led by Elon Musk. shareholders, SolarCity Corp. they overwhelmingly approved the acquisition of 85%. The deal is worth about $ 2 billion. Thus, Tesla Motors Inc. In addition to producing electric cars, it has officially turned into a clean energy company. With this deal, Tesla Motors Inc., maker of all electric cars and batteries, means integration with SolarCity, a manufacturer of rooftop solar panels.
The deal, which led to debates over debt and corporate governance concerns, Musk's expectation is to enable consumers, who are willing to be independent of fossil fuels, to have one-stop shopping thanks to Tesla. Thousands of employees of these two companies, with short-term profits and frequent fundraising needs, will take on the task of working with this integration.
"We're trying to create an integrated product ," Musk said in a meeting with Tesla shareholders, adding : " So you have a solar roof integrated with a Powerwall (solar energy storage battery that can be mounted on the wall) and an electric car, and it's all just one. You enter the Tesla store, only if you say yes, it does. Everything is running smoothly and you will love it. "
Tesla plans to use its stunning brand and retail network with SolarCity's rooftop solar panels installation network, and recently announced its " Solar Roof " product. The role that SolarCity's managing director and Musk's cousin Lyndon Rive will play in this merger company is not yet clear.
"You see long-term shareholders voting for Elon with 85% of the vote," said Ben Kallo , analyst at Robert W. Baird. "The shareholders are saying, 'They want to say,' We'll be here for three or five more years, not just until the first quarter next year. ''
It is not clear when the merger will be officially closed. SolarCity is expected to cease to be a stand-alone brand when Tesla markets its Powerwall battery as a Tesla Energy product for homes.
"I think SolarCity will become part of Tesla Energy, but I don't think this will happen overnight," Kallo said.
During his five-month merger campaign, Musk unveiled the solar roof product on the set of "Desperate Housewives" at Universal Studios in Los Angeles last month. Musk said in a statement that the product will cost less than a regular rooftop, and installations will begin in mid-2017.
* If you wish, you can watch Elon Musk's meeting with his shareholders in the form of questions and answers on the link: https://youtu.be/XT4BxI18B2I