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US: Tesla says SolarCity would add $1 billion to 2017 revenue

By  |  November 2, 2016

Tesla Motors said on Tuesday its $2.6 billion merger with SolarCity would add over $500 million in cash to the electric carmaker’s balance sheet over the next three years, while contributing over $1 billion to revenue in 2017.

Tesla, whose shares had fallen 10 percent since the deal was made public in June, used an eight-page document posted on its blog and investor relations website after the market closed to convince skeptical shareholders in advance of a Nov. 17 vote on the deal.

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.

Full Content: Reuters

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