Tesla Motors Inc.’s US$2.6 billion merger with SolarCity Corp. will add US$500 million in cash to the electric carmaker’s balance sheet in the next three years while contributing more than US$1 billion to its 2017 revenue.
Tesla, whose shares has fallen 10 percent since the deal was made public in June, made the disclosure on its blog and investor relations website in advance of a Nov. 17 vote on the deal, Reuters reports.
Tesla chief executive Elon Musk, who is chairman of SolarCity and the largest shareholder in both companies, has described their combination as a “no brainer”.
The document pitched the deal as part of Tesla’s mission to combat the “catastrophic impact” of greenhouse gases on the environment by accelerating the world’s transition to clean energy.
“The acquisition will enable us to transform into a truly integrated sustainable energy company,” it said, referring to the promise of a unique provider of carbon-free energy, transportation and power storage.
Naysayers of the deal — whom Musk called out during a conference call with analysts, saying they had never accurately predicted Tesla’s success — have said the merger is short on synergies and amounts to a Tesla bailout of money-losing SolarCity.
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