Tesla CEO Elon Musk, who is chairman of both companies, wants to combine them in an all-stock deal worth around $2.45 billion.
Tesla says solar panel maker SolarCity Corp. could add $1 billion in revenue next year if the two companies merge. Tesla says the two companies also could cut $150 million in costs in the first year of a merger by jointly marketing Tesla’s electric vehicles and power storage batteries with SolarCity’s solar panels. The automaker, based in Palo Alto, California, released financial details of the proposed merger Tuesday. Tesla CEO Elon Musk, who is chairman of both companies, wants to combine them in an all-stock deal worth around $2.45 billion. Shareholders of both companies are expected to vote on the deal on Nov. 17. The merger is controversial. Neither company has achieved sustained profitability, and both are operating in markets where demand is uncertain.