Just four days after shareholders gave their thumbs-up, SolarCity is now officially a wholly owned subsidiary of Tesla Motors Inc.
According to the filing with the Securities and Exchange Commission, each SolarCity share was converted into 0.11 Tesla shares and that the former company is crossed off of the Nasdaq market quotes.
Friday marked the final trading day for SolarCity with its shares’ last trading price hitting $20.34. Tesla shares for today’s early trading slightly tripped 50 cents at $184.52. This made the original $2.6 billion pricing of the deal end up $600 million short to only $2 billion.
Tesla chief, and also SolarCity chair, Elon Musk plans to make a powerful combo out of Tesla’s alternative-powered cars and electricity storage systems and SolarCity’s current-generating solar panels.
At an attempt to further introduce renewable power to the masses, Tesla launched its integrated solar roof panels that will be available in all Tesla stores alongside their cars and electric-storage units. The said solar roof panels can be installed like the regular ones, both in new construction and replacement roofing. The panels will begin selling next summer.
Musk told Tesla shareholders after the approval on Friday, “I don’t want to 100 percent commit to this yet, but it’s looking quite promising that a solar roof will actually cost less than a normal roof before you even take the value of electricity into account.”
“So the basic proposition would be, ‘Would you like a roof that looks better than a normal roof, lasts twice as long, costs less and by the way generates electricity?’ Like, why would you get anything else?” the electric car frontrunner added.
Skeptical analysts see the merger as a present drawback though, since the two companies have been annual money-losers. They are uncertain if the merger will be much of a synergy as these executives hope them to be.
Meanwhile, the International Energy Agency projects a decline in global gasoline consumption as the rise of the more energy-efficient electric cars from key players of the emerging industry force demand growth to halt in the next 25 years which will cause weighty consequences for the oil-refining industry as gasoline takes up one in every four barrels in consumption globally.
“Electric cars are happening,” said IEA Executive Director Fatih Birol in an interview in London. She also added that the number of these imminent innovations will likely rise above 150 million by 2040 compared to last year’s slightly above a million
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