Tesla went even further to sweeten the deal, though.
"We would like to thank our shareholders for continuing to support our vision for the future", Tesla said in a press statement. SolarCity reported a third-quarter loss of $225.3 million.
He added that the merger would accelerate "the world's transition to sustainable energy" by not only generating and storing clean energy but also be using this energy in the home and in the auto. By acquiring SolarCity, he hopes to "create the world's only integrated sustainable energy company" and "look [s] forward to showing the world what Tesla and SolarCity can achieve together". Musk argued that a merger would unlock the potential of both companies and add hundreds of millions of dollars in value. Electricity from solar panels replaces power generated by conventional power plants that run on coal or natural gas. (SCTY) approved Tesla's $2.1 billion all-stock offer to merge and create one company headed by Elon Musk that would sell emissions-free cars and solar panels that help power them.
The Tesla Solar roof was already very impressive when Tesla and Solar City unveiled the new solar tiles that look like regular shingles end of last month.
Tesla and SolarCity expect the combined company, which will operate entirely under the Tesla brand, to add more than a half a billion dollars of cash to Tesla's balance sheet over the next three years. When he announced the deal in June, Musk described a seamless customer experience for purchasing Tesla products. But some have questioned the two companies' optimistic outlook for the acquisition. Musk is also the cousin of SolarCity's CEO Lyndon Rive. Lyndon Rive is SolarCity's CEO, while Peter Rive is the company's chief technology officer.
Make no mistake: The new shingles will still be a premium product, at least when they first roll out.
Tesla and SolarCity executives earlier this month sought to ease those concerns, predicting that the solar energy company would generate $500 million in cash for Tesla over three years and that SolarCity's sales would almost double to $1 billion. And given the blessing of all shareholders, it's harder to say Musk is ramming the deal through for his own benefit. SolarCity shareholders met earlier Thursday in Foster City, California, and Tesla said SolarCity shareholders also approved the acquisition.