Shareholders of Tesla Motors, Inc. (NASDAQ:TSLA) and SolarCity Corp (NASDAQ:SCTY) have voted Thursday afternoon to approve the merging of the two companies. “Tesla’s shareholders have overwhelmingly approved our acquisition of SolarCity,” said a statement from Tesla sent to CNBC. “Excluding the votes of Elon and other affiliated shareholders, more than 85 percent of shares voted were cast in favor of the acquisition, the transaction will be completed in the coming days.”
Both companies are trading higher on afternoon trading. Although majority of shareholders are for the merger, some investors have filed lawsuits against the deal, many call it a bailout for SolarCity. Elon Musk holds almost 22 percent of SolarCity stock and 22 percent of Tesla’s. The merger concept comes out as the solar energy business slows down.
“It’s great for SolarCity. It doesn’t look as great for Tesla shareholders at this point,” Angelo Zino, an analyst with CFRA Research, told Reuters on Wednesday. Reuters also mentioned MAC Solar Energy Index, an ETF of solar energy stocks that is down over 40 percent this year. The automobile company says that it expects SolarCity to add over half a billion dollars in cash to Tesla’s balance sheet within the next 3 years.