Tesla shareholders approve merger with SolarCity

The $2.1 billion merger of SolarCity (SCTY) and Tesla Motors (TSLA), while simplifying and advancing the strategic vision of Elon Musk, faces a level of risk not seriously contemplated when the deal was announced in August. More specifically, an overwhelming 85 percent of Tesla shareholders, excluding Elon Musk and other affiliated shareholders approved the merger.

Tesla says the deal should be complete in the coming days, coming well within the Q4 2016 window Tesla was hopeful for. SolarCity is expected to cease being a stand-alone brand, as Tesla markets its Powerwall battery for the home as a Tesla Energy Product.

By Merging Tesla and SolarCity, Musk aims to create a clean-energy company that would give homeowners everything they need to power their cars and homes with clean energy. Antonio Gracias and J.B. Straubel also recused themselves from both votes. Musk said. “That’s looking really promising, and I think there’s even room for improvement beyond there”. “I think it’s really going to be some wonderful stuff that comes out”.

Earlier this month Mr Musk made an appeal to investors, predicting that SolarCity could add $1bn of extra revenue to Tesla next year, despite it having been loss-making until now.

For Musk, the deal is part of a larger plan to combine the battery technologies of Tesla with the power generating capabilities of SolarCity.

For the very first time unveiled at a Tesla event on October 28, the roofing material together developed by the carmaker and SolarCity would look just like any other premium roof tiles, while also used as solar panels for power generation. The votes were the only remaining obstacle to the merger.

Tesla Model S Review – The Ultimate Rental Car? Kallo’s stock price target of $338 is 79% above Thursday’s closing price of $188.66.

Tesla is also gearing up to launch its Model 3, which is the firm’s first mainstream electric vehicle.

Gordon Johnson, an analyst at Axiom Capital Management, downgraded seven solar companies on Tuesday, citing his expectation for less favourable renewable energy policies from Trump’s administration.

Tesla posted a net profit of $22 million in the third quarter, its first quarterly profit in three years.