Tesla Motors Inc. (NASDAQ: TSLA) shareholders will hold a crucial vote on November 17th, regarding the possible acquisition of SolarCity Corp. (NASDAQ: SCTY). Elon Musk is the chairman and the largest shareholder of both companies, and the CEO of Tesla. SolarCity’s CEO is Musk’s cousin Lyndon Rive.
Several shareholders did not like the announcement of the merger, some questioning the logic of a merger between an electric car manufacturer and a solar panel installer. Between now and November 17th several law suits against Tesla. On October 14th the court is expected to consolidate seven lawsuits brought against Tesla by some shareholders.
In a S4 SolarCity company filed with the SEC this Monday, the company indicates that “If the Merger is completed, SolarCity stockholders will have the right to receive 0.110 shares of Tesla Common Stock for each share of SolarCity Common Stock issued.”
In addition to the vote date, Tesla announced that it will pay $441 million to holders of the 2018 senior convertible notes has additional $205 million outstanding.