The shareholders of Tesla and Solarcity have agreed to the merger of the two companies on Thursday.
Tesla-Solarcity merger soon completed.
Tesla takes another step closer to the plan to become an energy supplier. In the summer, the car manufacturer announced to merge with the solar supplier Solarcity, which was also founded by Elon Musk. Tesla is to be worth more than two billion US dollars. The shareholders of the two companies voted on the merger on Thursday and voted for the majority with 85 percent. Musk himself abstained from his voice.
With the approval of the shareholders, Tesla and Solarcity can officially close the Merger. The transaction is scheduled for the next few days, writes Tesla on the official blog.
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The fact that Elon Musk is not afraid of risks is well-known – now the tech billionaire once again proves his entrepreneurial daring. For $ 2.6 billion (2.4 billion euros), his electrician Tesla is to swallow the solar power company Solar City. Both companies regularly write red numbers and are not much more than big promises. This Thursday, shareholders are to vote on the merger.
Musk enthuses about an “ideal connection” with obvious advantages. The takeover will provide the only fully integrated energy group in the world, with sustainability from a single source: electricity generation and energy storage from Solar City, environmentally friendly transport with the electric car from Tesla. As a “unique combination that surpasses what any other company can offer,” the superstar of Silicon Valley praises his plan.
Nevertheless, there are considerable doubts. Critics accuse Tesla CEO Musk of conflict of interests, since he is at the same time the largest shareholder and board of directors at Solar City. He was the obstetrician of the company founded and managed by cousins. Tesla co-founder JB Straubel is also a member of the Board of Directors at Solar City. The big investor Jim Chanos therefore described the planned deal as “the worst example of shameless company management”.
The well-known Hedgefonds manager speaks of a “changing insolvency” and assumes that the merged company will burn about one billion dollars per quarter. Chanos makes no secret of the fact that he has nothing to do with Musk’s business and is betting on a share price decline in his company’s shares.
The financial investor may be an extreme example of particularly stricter views. But even more moderate voices are skeptical. If the takeover is not a “silicon valley deal”, the plan would have failed as early as the announcement, wrote Steven Davidoff Solomon, expert in his “New York Times” deal professor. The project is “incestuous” in view of the interweaving of the companies and is as much affected by conflicts of interest as possible. That Musk got through with it was due to his bonus as a tech visionary.