Tesla and SolarCity shareholders have approved Elon Musk’s proposed merger that made him the head of the new company. Tesla Motor Inc. offered $2.1 billion to acquire SolarCity Corp to become a leader business in the emissions-free cars and rooftop solar panels market.
Musk proposed to create an integrated clean-energy business by merging the two companies in June and shareholders voted yes Thursday. Elon Musk is Tesla’s chief executive officer, and because he is also a chairman and shareholder in both companies, he did not vote.
The merger was approved by 85 percent of Tesla’s shareholders. SolarCity kept private their voting results but it is clear that they were convinced by Musk’s proposition. Elon Musk assured shareholders that their decision would be awarded.
Musk had an ace up his sleeve that assured him the acquisition. He has announced the new roof solar titles he planned to sell after both companies merged.
The titles promise to be a success since they are made of textured glass and perfectly simulate high-end roofing products. The concept is supposed to be visually appealing, which was inspired by Tesla luxury cars. The new design is expected to raise sales and promote clean energy.
The acquisition will be effective in the coming days, according to Tesla Motors Inc. The latter will soon start targeting homeowners to offer them electric cars. The merger wants to reach more people and get them also to buy solar panels and batteries to promote clean energy.
Musk: Solar titles might cost less than a traditional roof
After SolarCity and Tesla announced shareholders had agreed to merge the companies, Elon Musk said he had just returned from a meeting with SolarCity engineers. He learned that the solar roof panels could cost less than a traditional roof, a very appealing characteristic that will seal the titles’ success in the market.
Manufacturing and installing Tesla’s new product could save people money compared to traditional roofs.
The cost savings of Tesla’s luxury roof come from shipping. Traditional roofs are made of heavy materials, and shipping costs are high. In contrast, the new tempered-glass roof titles weight almost a fifth of the traditional roofs, which means less shipping costs.
Musk thinks that shipping prices will be enough to make Tesla’s upcoming product affordable for everyone. Additionally, people could save up to $100,000 in electricity bills.
“The basic proposition will be: Would you like a roof that looks better than a normal roof, lasts twice as long, costs less and, by the way, generates electricity?” Musk said.
Source: The Wall Street Journal