There was little drama at the Tesla shareholders meeting yesterday. The official voting was declared open at 1:02 pm Pacific time. At 1:05 pm, the voting was declared closed and the results were announced. 86% of Tesla stockholders who voted were in favor of the merger with SolarCity. Elon Musk announced at the time that SolarCity will now become a wholly owned subsidiary of Tesla. The outcome was never really in doubt after Institutional Shareholder Services — an organization that advises large shareholder groups like mutual funds and retirement fund managers — recommend approval earlier this month. The merger is expected to close in a few days.
Tesla is now well and truly on its way to becoming the world’s first vertically integrated sustainable energy company. It will manufacture products that turn sunlight into electricity, products that store that electricity at both the residential and grid level, and automobiles that run exclusively on electricity that can be recharged by those solar panels and storage batteries. Elon Musk’s dream is to show the world how to transition completely away from reliance on fossil fuels and use exclusively clean, renewable energy instead.
During his remarks at the recent unveiling of the Tesla Solar Roof, Musk told the audience that Tesla and SolarCity had done several joint ventures together but that he personally finds joint ventures to be cumbersome and inefficient because they require the approval of two separate and distinct corporate structures. Musk is all about efficiency.
With the merger of the two companies, Tesla can offer SolarCity products at all of its stores worldwide. As Musk said yesterday while talking about the successful merger vote, soon people will be able to go to a Tesla store and sign up for a Solar Roof. “It happens, it’s seamless, and you love it!” Musk said. Since the irrepressible Elon now claims a Solar Roof will cost the same as an equivalent conventional roof, “Why wouldn’t you?” he asked his audience? Good question, Elon. A very good question.