USA TODAY International Edition
Tesla, SolarCity plan votes next month
And both will debut new products in effort to sway investors
Elon Musk’s plan to combine Tesla Motors with solar power provider SolarCity will come to a head next month with shareholder meetings and votes in both companies, Tesla announced Wednesday.
Ahead of the Nov. 17 meetings, Tesla and SolarCity will both be showing off new products in what may be an attempt to turn the tide with skeptical investors. On Oct. 28, SolarCity will unveil a new roof product that will work in conjunction with Tesla’s home battery unit, Powerwall 2.0.
Musk, CEO of Tesla, has called the SolarCity deal a “no brainer.” SolarCity is run by his first cousin, Lyndon Rive.
“A combined Tesla and SolarCity will be able to provide the first- ever opportunity to generate, store and consume energy entirely sustainably, through a suite of integrated products,” Tesla said in a statement announcing the schedule. “By leveraging SolarCity’s installation network and Tesla’s global retail footprint, we can do this in a way that is seamless for our customers and that we expect will create significant value for our shareholders.”
Ever since it was announced in June, the Tesla and SolarCity combination hasn’t won over a lot of analysts. Barclays analyst Brian Johnson, for instance, wrote on Aug. 31 that the “deal is light on synergies and heavy on cash burn.”
The proposed acquisition has also been rough on Tesla stock. From highs of more than $ 225 a share over the summer, shares have fallen back to around $ 200. Wednesday, shares closed up $ 1.41, or 0.7%, to $ 201.51.
SolarCity hasn’t fared any better. From a high above $ 27 at the end of July, its stock closed at $ 19.99 a share, up 61 cents, or 3.2%, on Wednesday.
On Nov. 1, Tesla will provide additional financial information relating to its planned acquisition of SolarCity.
“These events will create a clear picture of how a combined Tesla and SolarCity will make solar and storage as compelling as electric vehicles — an achievement that would advance our mission of accelerating the world’s transition to sustainable energy,” Tesla said.