Shareholders of Tesla Motors Inc. and SolarCity Corp. approved Tesla’s $2.1 billion all-stock offer to merge and create one company headed by Elon Musk that would sell emissions-free cars and rooftop solar panels that power them.Tesla and SolarCity shareholders on Thursday overwhelmingly approved Tesla’s acquisition of SolarCity in a stock transaction, valued at about $2 billion, that is designed to create one-stop shopping for homeowners’ power generation, energy storage, and electric vehicles.
The takeover will expand the electric car maker’s clean energy business.Some investors had opposed the move, citing a conflict of interest.
“Your faith will be rewarded,”
-Mr. Musk told Tesla investors on Thursday after the company announced shareholders overwhelmingly approved the deal.But Tesla said the tie-up was “overwhelmingly” approved by 85% of shareholders not affiliated with the energy business.
With the acquisition, one of the first steps Tesla will need to take is to integrate SolarCity into Tesla and produce sales synergies. Cost cutting of duplicate departments are the easier tasks to perform in a merger, one of the harder steps will be to merge the sales forces in Tesla’s locations and drive lower-cost sales.
Tesla’s stock increased $4.73, or 2.6%, to $188.66 a share Thursday, before the shareholder vote was announced, and shares continued to rise slightly in after-hours trading. SolarCity was up 57 cents, or 2.9%, to $20.40 share and also continued rising in after-hours trading.