On November 17, shareholders of electric car company Tesla Motors Inc. (TSLA - Free Report) and solar panel manufacturer SolarCity Corp. approved the buzzworthy deal to combine the two companies. It’s well known that Tesla CEO Elon Musk—Musk will also assume the role of Chief Executive of the new company—wants to create an integrated energy super-company, and the deal gets him one step closer to his ultimate goal.
The carmaker said that over 85% of shareholders voted in favor of the merger, and the transaction is set to be completed in the "coming days." “We would like to thank our shareholders for continuing to support our vision for the future…We look forward to showing the world what Tesla and SolarCity can achieve together,” Tesla commented.
Under the terms of the deal, SolarCity shareholders will get 11 cents of a Tesla share for every share of SolarCity that they own. At the closing price of November 17, that offer is valued at roughly $20.75 per share, or just under what SCTY stock closed at. The acquisition will cost Tesla about $2 billion.
Musk made two additional announcements after the acquisition voting results. Tesla’s solar roof tiles, which the company announced last month, will cost less than conventional roofs, even before energy tax credits and energy cost savings. Musk has boasted that the Tesla solar roof tiles will also look better and weigh less than current models.
The CEO also clarified earlier statements about its low-cost Model 3’s access to Supercharging stations. The highly-anticipated electric car will come with “free long-distance charging,” but will not have free Supercharging access forever.
TSLA has lost over 15% in value year-to-date, while SCTY is down over 61%.
Interested in the other top stories of the week? Listen to Zacks Friday Finish Line to catch up on the week’s financial and investment news.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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On November 17, shareholders of electric car company Tesla Motors Inc. (TSLA - Free Report) and solar panel manufacturer SolarCity Corp. approved the buzzworthy deal to combine the two companies. It’s well known that Tesla CEO Elon Musk—Musk will also assume the role of Chief Executive of the new company—wants to create an integrated energy super-company, and the deal gets him one step closer to his ultimate goal.
The carmaker said that over 85% of shareholders voted in favor of the merger, and the transaction is set to be completed in the "coming days." “We would like to thank our shareholders for continuing to support our vision for the future…We look forward to showing the world what Tesla and SolarCity can achieve together,” Tesla commented.
Under the terms of the deal, SolarCity shareholders will get 11 cents of a Tesla share for every share of SolarCity that they own. At the closing price of November 17, that offer is valued at roughly $20.75 per share, or just under what SCTY stock closed at. The acquisition will cost Tesla about $2 billion.
Musk made two additional announcements after the acquisition voting results. Tesla’s solar roof tiles, which the company announced last month, will cost less than conventional roofs, even before energy tax credits and energy cost savings. Musk has boasted that the Tesla solar roof tiles will also look better and weigh less than current models.
The CEO also clarified earlier statements about its low-cost Model 3’s access to Supercharging stations. The highly-anticipated electric car will come with “free long-distance charging,” but will not have free Supercharging access forever.
TSLA has lost over 15% in value year-to-date, while SCTY is down over 61%.
Interested in the other top stories of the week? Listen to Zacks Friday Finish Line to catch up on the week’s financial and investment news.
Stocks that Aren't in the News…Yet
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015, with a stellar average gain of +26% per year. See these high-potential stocks now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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