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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.
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.
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.
Mr. Musk didn't vote.
Had you actually read any of this stuff u would have realized that most of 'subsidies' that musk company gets, are actually to customers, or were state subsidies, I.e. they only impact ppl in those states.
I prefer the "u" in honour as it seems to be missing these days.
If the subsidies were not a competitive advantage, Tesla would refuse them.
Other automakers can have the same kinds of subsidies if they sell the same kinds of cars. It's not a handout to Tesla, it's a handout to anyone who wants to sell EVs. It's not Tesla's fault that nobody else can make an EV as good as theirs, in spite of being multi-billion-dollar-revenue automakers which make literally millions of vehicles every year.
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"