Tesla, SolarCity could unveil merger plans as early as Monday


Tesla Motors and SolarCity are expected to announce merger plans on Monday, Reuters reports.

The companies would then have to convince their respective shareholders to approve the deal.

Tesla CEO Elon Musk, who also serves as SolarCity’s chairman, is pushing for the merger with solar leasing group, which is run by his cousin, CEO Lyndon Rive.

Musk, the biggest shareholder of both companies, argues that a merger would be a win for both companies, facilitating SolarCity’s access to the electric carmaker’s customers, which could install PV systems on their homes to charge their cars and power Tesla storage batteries. Tesla’s $5 billion battery gigafactory in Nevada is key to both Tesla and SolarCity’s businesses.

Reuters points out that the merger agreement is not certain since SolarCity had established a special committee to review Tesla's offer independent of Musk’s influence. In addition, the deal will likely include a provision allowing SolarCity to consider offers from other interested buyers.

Musk, Rive and his brother, SolarCity board member Peter Rive, and several other executives have recused themselves from voting, Reuters adds.

Tesla has said it offered 0.122 to 0.131 of its shares for each SolarCity share. Tesla and SolarCity have market capitalizations of $34.6 billion and $2.6 billion, respectively.

While Tesla shares initially dropped to below $190 following its June 21 offer, they have recovered, closing at $234.79 on Friday, signalling increasing support from shareholders for the deal.

Popular content

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.


Related content

Elsewhere on pv magazine...

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.