SolarCity Raises $345 Million to Finance New Solar Projects

Musk revealed in a tweet 10 days that he was working on a new master plan. All traffic to Tesla Motors is now redirected to Tesla.

With preternatural clockwork regularity, SolarCity appears in our headlines as having raised more financing for its company.

Tesla Motors Inc (NASDAQ:TSLA) saw one of its worst times in recent months, on the back of three key problems: SolarCity Corp (NASDAQ:SCTY) acquisition, first Autopilot fatality leading to regulatory infestation, and quarterly delivery miss.

The solar panel industry is heavily subsidized, with companies like SolarCity and its competitors benefitting from 30 percent federal tax credit for home solar panels.

On June 21, Musk and the company sent a letter to SolarCity CEO (and Musk’s cousin) Lyndon Rive offering to buy the company for a stock-for-stock exchange. Now the solar panel company’s board and advisors are reviewing the offer.

Mr. Musk expects to have a two-third majority in favor of the deal, despite the fact that the super majority is not required for the approval.

Musk himself is barred from voting on the deal given the obvious conflict of interest and his involvement in the two companies.

Musk has been discussing the potential acquisition with Tesla’s biggest investors such as Fidelity Investments and large mutual funds, according to the Journal.

SolarCity expects the the new equipment and installations will help customers to pay less for solar power than they pay for utility power. Musk said he would include details of the combination in a new “masterplan”, which he wants to publish as early as this week.

Today, the stock is trading up 1.05% at $227.63 and climbed to an intraday-high of $228.86, up 1.6% from its last closing price.