Tesla shareholders greenlight SolarCity merger

Elon Musk gets his way as firms create “vertically-integrated” energy company

Shareholders in Tesla have given their approval to plans for the company to merge with solar panel company SolarCity in a $2.6 billion deal.

The electric car company said that 85% of shareholders had approved the merger, and that some investors cited a conflict of interest as a reason for opposing the deal.

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Elon Musk, chief executive of Tesla, said earlier this month that SolarCity would add an extra $1 billion in revenue for Tesla, despite being loss making up until now.

He added that the merger would accelerate "the world's transition to sustainable energy" by not only generating and storing clean energy but also be using this energy in the home and in the car.

Tesla announced in June that it has reached a deal to buy SolarCity. At the time, the firm said this would create "the world's only vertically integrated energy company".

Tesla is facing several lawsuits over the merger, according to reports from Marketwatch, with most alleging a breach of fiduciary duty by the firm.

Last month, Musk demoed solar panels that look like roof tiles. The tiles, available in four colours, will be available to buy next summer and can be used with Tesla's new home energy storage system.

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Tesla is also gearing up to launch its Model 3, which is the firm's first mainstream electric car. The company recently posted its first profitable quarter in more than three years and said its next quarter will also be profitable.

Image credit: Tesla

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