Tesla shareholders greenlight SolarCity merger

“We’re trying to make an integrated product, an integrated solar roof with a power wall and a auto”, Musk said during Q&A portion of the special shareholder’s meeting.

Tesla shareholders voted in favor of its acquisition of SolarCity on Thursday.

Analysts wondered why Tesla would want to take on SolarCity while it’s building a big battery factory in Nevada and preparing to launch its first mass-market vehicle, the Model 3, due out at the end of 2017.

Musk has called the deal a “no brainer”.

SolarCity has also unveiled a promising product in the form of solar panel roof tiles, which Musk claims are comparable in cost to traditional roof tiles but more durable.

Joining Tesla’s retail network with SolarCity’s installers and consolidating the two companies’ supply chains may result in an estimated $US150 million in cost synergies within a year.

Shareholders of both companies are scheduled to vote Thursday afternoon at two separate meetings near the companies’ California headquarters.

Musk has also said that SolarCity will not harm the combined entity’s financial interests. The premium was about 35 per cent when first announced.

Tesla shares rose less that 1 percent to close at $183.93 Wednesday.

Shares of both companies dropped in the ensuing months. The votes were the only remaining obstacle to the merger. And given the blessing of all shareholders, it’s harder to say Musk is ramming the deal through for his own benefit.

There’s still no price for Tesla’s solar roof, either standalone or in the (likely) package with a Tesla PowerWall 2 home battery and an electric auto charger.

The combined company must contend with President-elect Donald Trump, whose views on energy are a sharp departure from President Barack Obama.

One of the president-elect’s first actions has been to appoint noted Washington D.C. -based climate change skeptic Myron Ebell to oversee the transition of the U.S. Environmental Protection Agency. Elon Musk is also the CEO of the private space exploration company SpaceX.

Elon Musk unveils Tesla’s Powerwall 2 battery and SolarCity’s roof panels in Los Angeles in October. “Thank you for what you’re doing and have done”. “We won’t let you down”.