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Elon Musk, the largest shareholder in both Tesla Motors Inc and SolarCity, expects the proposed merger of the two companies to be backed by a supermajority of stockholders.
In an interview with Wall Street Journal (WSJ), Musk said the most informed shareholders are “highly supportive” of the planned merger. Opposition, on the other hand, comes from those who do not understand the advantages of bringing together Tesla electric powered vehicles and rooftop solar.
A day after the interview, Musk posted a new master plan for Tesla in which he points at the creation of a solar-roof-with-battery product “that just works”. The goal is to simplify the ordering experience for customers, to implement a single installation under one service contract and to allow the client to manage the systems via one phone app.
“We can’t do this well if Tesla and SolarCity are different companies, which is why we need to combine and break down the barriers inherent to being separate companies,” he says.
In June, Tesla’s board proposed to acquire all of SolarCity in exchange for Tesla stock.
Since then, Musk has been discussing the plan with Tesla’s largest investors, including Fidelity Investments.
He expects the transaction will be backed by a two-thirds majority, even though it needs less than that to go through, the WSJ said.
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