Tesla Motors Inc’s merger deal with SolarCity Corp will add over million in cash to the electric carmaker’s balance sheet over the next three years, contributing over $1 million in revenue in 2017, according to Tesla Chief Executive Elon Musk.
Electric carmaker Tesla Motors Inc’s merger deal with American provider of energy services and solar panel installer SolarCity Corp will add over $500 million in cash to Tesla’s balance sheet over the next three years. It will also contribute to 2017 revenue by adding $1 billion.
Tesla Motors’ shares fell by 2% in after-hours trade, following another 4% drop in afternoon trade, closing at $197.73 per share. Similarly SolarCity’s shares also fell another 3.5% in after-hours trade, after falling 2.7% during regular trading closing at $19.07.
Tesla, whose shares have been falling since the public announcement of the merge in June, posted an eight-page document on its blog and investor relations website in order to convince skeptical shareholders of a November 17th vote of the deal.
The document pitched the deal as part of the electric carmaker’s mission to combat “the catastrophic impact” greenhouse gases have on the environment by accelerating the world’s transition to clean energy. Tesla also highlighted in the document that it expected improvement in SolarCity’s GAAP revenue and profitability due to less reliance on leasing and more on purchases. Tesla said that nearly one-third of residential bookings in September were purchases, a four-fold improvement over the first quarter.