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Tesla and SolarCity Merger Gets Approval From Shareholders (cnbc.com)
An anonymous reader quotes a report from CNBC: Shareholders for SolarCity and Tesla voted Thursday to approve merging the two companies. "Tesla's shareholders have overwhelmingly approved our acquisition of SolarCity," said a statement from Tesla sent to CNBC. "Excluding the votes of Elon and other affiliated shareholders, more than 85% of shares voted were cast in favor of the acquisition. With SolarCity's shareholders also having approved the acquisition, the transaction will be completed in the coming days." The deal has divided investor and analyst opinion. Some Tesla shareholders have filed lawsuits against the deal, and critics have called it a bailout for SolarCity. Chairman Elon Musk, who holds about 22 percent of SolarCity stock and 22 percent of Tesla's, has recused himself from both votes, as have other insiders such as director Antonio Gracias and J.B. Straubel. Gracias, the founder of Valor Equity Partners, sits on both companies' boards, and Straubel was part of Tesla's founding team and serves as its chief technical officer, according to company filings. The merger comes as the solar energy business is showing signs of a slowdown.
The synergy makes sense. I like the roof idea.
Greed is the root of all evil.
I'm sure they've been in the back merging for a while now. Of course some guy named Gracias is sitting on both company's "boards".
If we didn't believe Musk knew what he was doing, we'd simply sell.
A no vote would equate to a vote of no-confidence for stock which is largely driven by speculation. As of this exact moment, neither Tesla nor SolarCity are super-profitable or dominant in their industries. But we're hoping it gets big. Why would we tank stock we own?
The recommended action (which was right above the ballot) was to vote yes. Duh, it's their idea in the first place. And most people won't rock the boat.
And business-wise, it DOES kinda make sense. The two are related. Kinda. There's not a great reason why they couldn't be two different companies though.
The downside is that this might be an example of Musk having one of his companies eat and absorb the losses of one of his failures which he doesn't REALLY want to admit is a failure. I dunno, I'm too busy to really dig into it. I know I probably couldn't find anything meaningful if I did go digging. And I don't have all that much money in there.
Wasn't that the ending of time cop?
So, Tesla and Solar City join to form Tesla City.
Then in a bizarre twist, Tesla City merges with the relatively unknown Spatula Designs, to form Spatula City!
Do not look into laser with remaining eye.
you mean Mr. Musk convinced Mr. Musk that this merger was in the best interests of Mr. Musk? Shocking!
And yet, it is all vaporware.
The company receives billions of taxpayers' money and donates millions to the "pro-solar" politicians — to keep the subsidies coming in.
With such an arrangement, why bother with any product at all? Solarcity is yet to show profit. What makes it "attractive" to Tesla is that it is run by cousins of Elon Musk. I don't blame him for wanting to get in on the racket.
In Soviet Washington the swamp drains you.
What this means is they will be able to kind of survive if their carbon offset goes away under Trump.
Non sequitur: Your facts are uncoordinated.
I've owned stock via a personal account since the year 2000 and all I've ever received in the mail is the usual voting options of "We recommend you vote FOR the list of board members, the choice of XYZ as the auditing company, and the executive stock incentive program. We recommend you vote AGAINST the stupid idea(s) being pushed by activist investors."
I never got anything interesting like "Hey, we want to merge with this other company. Do you think this is a good idea? We recommend you vote FOR this."