Skip to main content

Tesla and SolarCity formally engaged as directors approve acquisition

Tesla logo
philipus/123RF
It’s a pairing few doubted would happen. The deal won’t be finalized until shareholder votes this fall, but the directors of both companies have approved Tesla’s purchase of SolarCity, as reported by Electrek.

SolarCity has 45 days to find another more suitable mate, in what’s called a “go-shop” period. During that period SolarCity can actively solicit other proposals. As of September 14, 2016, however, no more suitors are allowed. The Securities Exchange Commission also has to approve the deal. Once those hurdles are crossed, the “disinterested” shareholders will vote, with a majority vote is required from each company. Non-disinterested shareholders include Elon Musk, the largest shareholder of each company — he and others who have shares in both companies will not be voting.

The terms of the deal, which will be an all-stock transaction, are based on calculated 5-day stock price averages. Since Tesla is buying SolarCity, for each share of SolarCity shareholders would receive 0.110 shares of Tesla common stock. That puts the value of the entire deal at $2.6 billion.

The point of the buyout is to combine the two companies into Musk’s plan all along for a “vertically integrated sustainable energy company.” Together the companies will create, “fully integrated residential, commercial and grid-scale products that improve the way that energy is generated, stored and consumed.”

In the joined company, SolarCity solar power systems will work with Tesla’s growing range of Powerwall and Powerpack energy storage products and customers will have a single point of contact for installation and service for energy capture and storage. For Tesla car, SUV, and eventual truck owners, the same firm will charge their vehicles.

The joint company is expected to save $150 million in the first year by lowering costs and improving efficiency. Tesla’s current 190 retail stores will provide additional solar system outlets and SolarCity will benefit from Tesla’s international reach and presence.

Editors' Recommendations

Bruce Brown
Digital Trends Contributing Editor Bruce Brown is a member of the Smart Homes and Commerce teams. Bruce uses smart devices…
Alpine sale: Up to $160 off speakers and subs for your car
alpine speaker sale crutchfield march 2024 car and amp setup on table

If you’re looking to kit your car out with some superior speakers or a subwoofer, Crutchfield is the place to go today. Right now, there’s a huge sale on Alpine subwoofers and speakers with nearly 50 different items forming the sale. As there are so many options, the best idea is to hit the button below to see what’s around. If you don’t know where to start though, read on while we take you through some great items in the sale.

What to shop for in the Alpine sale
Buying the best aftermarket car speakers are important for anyone who spends a lot of time on the road and is currently dealing with a mediocre sound system. One good starting point in the Alpine sale is the 2-way speakers for $104 instead of $130. You get two 2-way speakers with a polypropylene/glass fiber/mica woofer with a specialized rubber surround. There’s a one-inch silk dome tweeter with speakers able to handle up to 80 watts RMS with 240 watts peak power. The grilles aren’t included but the factor ones should be fine for most purposes.

Read more
Mercedes to trial humanoid robots for ‘low-skill, repetitive, demanding’ jobs
Apptronik's Apollo robot at work in an auto plant.

Humanoid robots have been coming on leaps and bounds in recent years, and some major companies are starting to take note.

Mercedes-Benz, for example, has just entered into an agreement with Texas-based robotics specialist Apptronik to collaborate on identifying applications for highly advanced robots that the auto giant could deploy. The deal will involve a trial that will see Apptronik's Apollo humanoid robot work alongside Mercedes' human workers on the factory floor.

Read more
Hyundai Ioniq 9: price, release date, range, and more
Hyundai Ioniq 9 Front

Hyundai has been at the forefront of EV development for a while now, largely thanks to the success of the crossover-sized Hyundai Ioniq 5. But the company is readying another new EV that could be even more popular than the Ioniq 5 -- or at least more desirable in the U.S., the land of big cars.

The upcoming Ioniq 9, previously set to be called the Ioniq 7, will be Hyundai's take on an electric SUV. It will be to Hyundai what the Kia EV9 is to Kia. It will have three rows and carry over design elements from the Ioniq 5.

Read more