Tesla, SolarCity close deal

After winning nearly 85 percent of shares voted, the merger between Tesla and SolarCity was finalized today.

After months of hype and electioneering to win shareholder votes, the company released a one-line statement Monday morning: “We’re pleased to announce that Tesla’s acquisition of SolarCity closed this morning.”

The $2.1 billion marriage between the electric vehicle maker and the one of the country’s largest solar panel installers can now move from courting to growing its business.

CEO Elon Musk spent much of his Q&A session with shareholders last week talking about the new solar roof. Musk suggested the product would be cheaper, last longer and be more attractive than traditional roofs. As a bonus, it generates electricity.

But one analyst did a back-of-the envelope calculation and figured that solar tiles would cost six times more per foot than asphalt shingles, according to The Street.

Musk has hinted at more products and synergies ahead. Shareholders will expect more than the estimated $150 million annual savings from combining operations.

As the lawyers were working through the weekend to close the deal, they may have felt a bit drowsy by the time the ink was dry.

Tesla has a solution for weary drivers, too. It released a video of a commute made entirely on Autopilot and hands-free to its Palo Alto headquarters. Enjoy the ride.

The driver-assist system is still being investigated for its role in a fatal May crash in Florida.

 

Photo at top: A Tesla solar roof made of Tuscan-style tiles. The glass tiles are embedded with solar cells. (Courtesy Tesla)

 

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  • Chris

    Makes sense to vote for it. I imagine most Tesla investors invested in Tesla for Musk’s long-term dream, not short-term dividends from profits.

 
 
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