Tesla's takeover of SolarCity has just been approved by shareholders

Hayley Kirton
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Elon Musk has previously said the $2.6bn deal could raise $1bn in revenue (Source: Getty)

Tesla Motors' acquisition of SolarCity is on after it was revealed tonight it had received the green light from shareholders, according to various reports.

By bringing the two firms together, Tesla chief executive Elon Musk has previously said he hopes to create a one stop shop for customers looking to pick up solar panels, home batteries and solar roofs and has claimed the merger could generate an extra $1bn (£800m) in revenue for Tesla and create $150m of cost savings within the first year.

The tie-up, which is worth about $2.6bn, has raised more than a few eyebrows. SolarCity's largest shareholder is none other than Musk himself.

Shares in Tesla Motors have risen 1.1 per cent to $190.65 in after hours trading, while shares in SolarCity have shot up 2.8 per cent to $20.98.

2016 has been a bumpy road for Musk and Tesla. The company surprised many when it posted a quarterly profit of $21.9m last month, also revealing that revenue had more than doubled.

However, a tragically fatal crash of one of the company's vehicles earlier in the year has prompted an investigation by the US Securities and Exchange Commission, which, in particular, was interested in finding out why the tech firm delayed in disclosing the death in its securities filings.

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