Tesla and SolarCity merger gets approved by Shareholders

Two of the companies Elon Musk is heavily involved in have merged, after the decision was approved by those with an interest in the company.

“We would like to thank our shareholders for continuing to support our vision for the future”, says Tesla.

SolarCity is set to become a subsidiary of Tesla. Musk is chairman of both companies, and SolarCity is run by his cousins. Antonio Gracias and J.B. Straubel also recused themselves from both votes. However, when taken to a vote, the decision to acquire SolarCity was approved by a whopping 85% of shareholders. “It’s really going to be some amazingstuff that comes out”. Elon Musk holds nearly 22 percent of SolarCity stock and 22 percent of Tesla’s.

Tesla has said the deal would create “the world’s only integrated sustainable energy company, from energy generation to storage to transportation”. Last month, he unveiled roof solar tiles that the combined company would sell.

However, in a detailed statement issued at the beginning of this month, Elon Musk explained how SolarCity would add more than $500.0 million in cash to Tesla’s balance sheet over the next three years.

It is unclear if shareholder lawsuits have all been resolved, however analysts do not expects these to stop the deal.

Tesla Model 3 owners will be able to use Supercharging stations for free, but only when far from home. Growing concerns over potential safety issues related to its touted Autopilot driver-assistance feature, as well as uncertainty over federal tax breaks for electric cars under the incoming USA administration, has left the automaker in a tough spot this year, according to Reuters-sending its stock price tumbling by nearly 20% this year.

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

President-elect Donald Trump’s administration and the Republican-controlled Congress are unlikely to bestow such favors upon the electric vehicle and solar markets. Shares were up 1.3 per cent in after-hours trade after gaining 2.6 per cent in the regular session to close at $188.66.

SolarCity shares rose 2.9 percent to $20.40, down from $26.40 in June.