The merger between Tesla and SolarCity has been approved by shareholders.
Tesla's solar roofs are expected to hit the market next year and its solar cells will be produced at SolarCity's Gigafactory in Buffalo, NY. Tesla is buying SolarCity stock after it fell about 60% from where it was trading three years ago. "Electricity", Musk said, "is just a bonus". SolarCity has recorded losses in six of the last eight quarters. In the words of the Tesla CEO himself, this merger could contribute to "accelerating the world's transition to sustainable energy".
Shareholders and analysts also doubted whether taking Tesla into the home solar panel market was wise considering the financial difficulties suffered by the automotive division of the company.
"This is as good of a scenario as we could have imagined", he said. Electric cars replace vehicles that run on gasoline and diesel fuel.
In terms of what we can expect from the combined company, SolarCity's rooftop solar offerings will be further integrated with energy storage and promoted to Tesla customers (and vice-versa).
Shareholders of Tesla Motors and SolarCity are scheduled to vote Thursday on whether the luxury electric automaker should acquire the rooftop solar giant in a $2.23-billion deal.
Speaking after the vote, Musk said that after conversations with SolarCity engineers, "it's looking quite promising that the solar roof will cost less than a normal roof before you even take the value of electricity into account".
Musk said during the shareholder meeting that people should be going after solar roofs in the future as they look better than traditional roofs, cost less, generate electricity, and are also more durable. Musk asked. "Why would you get anything else?"
Musk convinced shareholders that the deal was, as he originally stated, 'a no-brainer'.
The deal will be an all-stock transaction, with SolarCity shareholders receiving 0.11 Tesla share for each SolarCity share they own.
Thursday will be an important day for Tesla Motors (NASDAQ: TSLA) and SolarCity (NASDAQ: SCTY).
Investors also raised concerns about the close ties between the two companies.