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$2.1 billion Tesla merger approved by shareholders

"Green living" is gaining a foothold in our nation. Whether it is through solar powered homes or electric cars, more individuals in Moorestown are becoming interested in how they can reduce their carbon footprint. Therefore, they may be interested to hear of a $2.1 billion merger between Tesla Motors, Inc., and SolarCity, Corp., which was recently approved by companies' shareholders. The merger creates a single company run by Elon Musk, who is currently the chief executive officer (CEO) of Tesla. He is also the primary shareholder of both Tesla and SolarCity.

The new company aims to create an integrated clean-energy company to sell motor vehicles that are emissions-free and, at least in part, powered via solar. The company also sells solar powered roof tiles for homes on a cash basis, instead of the current lease basis.

It is estimated that in 2017, the newly-merged company will generate $1 billion. SolarCity's 2015 revenue was only $400 million.

Some have said that the merger is simply a way to bailout SolarCity. However, others have said that the merger is the next step in growing Tesla's products. The merger was first proposed in June.

Large mergers, like this one, often catch our attention, particularly, if they are to create a new company offering more products than either company did before the merger. While it is understood that mergers of this size are complex business transactions, in truth, even smaller mergers take a good deal of work and knowledge to execute successfully. Therefore, any company contemplating a business merger may benefit from seeking legal advice first.

Source: FOX, "Tesla, SolarCity Merger Gets Shareholder Approval," Nov. 18, 2016

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