early christmas present for elon musk as shareholders bless tesla-solarcity merger - battery power storage
Billionaire tech industrialist Elon Musk's Christmas season came early as shareholders of Tesla and SolarCity approved the merger of the two companies to create a unified
Musk, 45, the biggest individual shareholder of the two companies, has been aggressively lobbying for the merger for months.
The company issued a statement shortly after the end of the first-level market transaction saying that it did not include his vote with related shareholders, "more than 85% of the shares voted in favor of the acquisition . ".
"With SolarCity's shareholders also approving the acquisition, the transaction will be completed in the next few 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 said . ".
Musk believes that for a long time
Long-term earnings from the merger of the two companies, although expected to be $2.
1 billion price tag including substantial revenue increase and ability to provide customers with comprehensive clean energy and transportation solutions for solar roof, household battery energy storage and emissions
Electric car free
Earlier this month, Tesla said it would add about half a billion more cash on its balance sheet over the next three years.
Musk also said that the combined sales and marketing business will directly save $0. 15 billion and reduce corporate and indirect costs.
Barclays analyst Brian Johnson said in a research report yesterday that voting in favor of shareholders was the most likely result.
So, "the stock can see some proximity-
"Said Johnson.
With the approval of the merger, the company is also ready to continue selling solar roof tiles unveiled last month in Los Angeles, and to work with Panasonic to produce solar cells at a factory in Buffalo, solarCity is scheduled to open in New York in 2017.
Previously, Tesla rose 2. 6% to $188.
In the Nasdaq trading
Shares of SolarCity rose 2. 9% to $20. 40.
The merger comes as Tesla is working at the Fremont assembly plant in California to boost production of its premium Model S sedan and Model X crossover vehicles and increase Model 3, its first mass production Model
Market vehicles, 2017.
By 2018, Musk wants the plant to build vehicles at a rate of 500,000 vehicles per year, about five times the number of vehicles built in 2016. The Palo Alto-
The auto maker, based in Reno, Nevada, is also completing the construction of a huge $5 billion project aimed at becoming the world's largest lithium.
Ion battery factory after completion.
Given the capital-
The intensive nature of these projects, and the capital needs of SolarCity, the merger may "dilute" Tesla's profitability and may distract senior management, Efraim Levy, A stock analyst at CFRA Research said in a report late Thursday.
He thinks Tesla holds shares.
"Nevertheless, we believe that removing some of the uncertainties that we believe put pressure on TSLA stocks may in itself be positive," Levy said . ".
"Elon Musk is clearly the force of change, but we think the TSLA shareholders' meeting sees the return being delayed.