Tesla CEO Elon Musk, who just released a report stating clear-cut goals for the SolarCity acquisition, is confident that shareholders will approve the deal. Musk even said that the early response is “overwhelmingly in favor” of the merger.
Tesla proved naysayers wrong
On a conference call, Musk agreed that there are some who do not agree with the deal, and the majority of them were already not confident in the company. However, Tesla proved all those naysayers wrong by posting a profitable third quarter and is on track to deliver 50,000 new vehicles in the second half of this year. On the other hand, analysts such as Jon Windham, Daniel Ford and William Grippen of Barclays agree with Musk, stating that the merger will create a formidable competitor in the U.S. residential solar space.
Tesla shareholders have been voting through proxy ballots over the past few weeks ahead of the shareholder meeting, which will be held on November 17 for the official vote.
Musk said during the conference call,” As I expressed before, I’m pretty optimistic about where the vote is going. The early votes so far have been overwhelmingly in favor and I’d be surprised if it wouldn’t pass.”
Major investors such as Fidelity’s OTC Portfolio stated that they were behind the idea, which indicates that the merger could be a possibility at this point of time, says Electrek.
Musk touts the benefits of SolarCity merger
In a report, the EV firm said the merger will add $1 billion in revenue that will be reflected in Tesla’s balance sheet in 2017. The solar firm will also bring more than $500 million in cash over the next three years, according to the statement made by the EV firm. But Musk, who is also the chairman of SolarCity, has a huge task in front of him to convince skeptical analysts and shareholders.
Musk has ambitious plans once SolarCity is merged. He touted the plans of offering entire roofs made of solar panels that would be similar to shingles. However, Musk did not provide any detail on the cost of entire solar roofs. All Musk said was that making the shingles out of glass and the printing that is required are cheap. He is not happy about the fact that other companies are reluctant in considering solar roofs and go for solar panels instead.
Tesla is looking to be a one-stop solution for homeowners, offering SolarCity’s home solar products, a home battery to conserve energy and a home battery to store the energy for nighttime use with the capability of recharging a Tesla electric car in the garage using sun power.