- Mark Von Holden/AP
Tesla and SolarCity will each hold separate special meetings for shareholders to vote on the proposed merger November 17, according to a joint SEC filing Wednesday.
The special meeting for Tesla shareholders will occur at Tesla’s Page Avenue Facility in Fremont, California. Only Tesla shareholders as of September 23 will eligible to vote on the merger.
The special meeting for SolarCity’s shareholders will occur at Crowne Plaza Hotel at Foster City, California. Like Tesla, only SolarCity shareholders as of September 23 are eligible to vote.
SolarCity’s board approved the deal, which is worth $2.6 billion, in August.
- AP/Ed Andrieski
The proposed merger has faced criticism. Tesla has a lot to contend with in 2017 as it ramps up production for the Model 3, and would be adding SolarCity’s more than $3 billion in debt to its balance sheet.
Elon Musk also owns about 20% of both companies and is CEO of Tesla and chairman of SolarCity. Musk is also the cousin of SolarCity’s CEO Lyndon Rive.
Tesla and SolarCity are also hosting a joint event on October 28 to unveil a solar roof product. It will be integrated with the new version of Tesla’s at-home battery, the Powerwall 2.0, and Tesla’s charger.
Tesla wrote on a blog post Wednesday that its October 28 event will provide greater insight to the strategic plan for the merger.
“Over the next few weeks, Tesla will share important updates regarding our strategic plan for the combined company,” Tesla wrote in the post. “On October 28th, Tesla and SolarCity will unveil a solar roof product, which along with Powerwall 2.0, will show the kinds of products that the combined company will be able to create.”
“And on November 1st, Tesla will provide additional financial information relating to its plans for the combined company,” the post continued.
In a recent interview Rive told Business Insider that the solar roof product will give the company a major edge in 2017.
“We should definitely increase forecasts for 2017,” Rive said. “I think there will be high demand for solar combined with storage. Our solar roofing offering opens up a whole new market we haven’t addressed before.”
SolarCity has made changes to improve its cash flow this year. The company has conventionally leased panels, but is now selling more panels to increase cash flow. SolarCity introduced a loan program in June to incentivize purchasing as part of that change in strategy.
SolarCity has also cut its marketing costs, as first reported by the Wall Street Journal. A SolarCity spokesperson confirmed to Business Insider that there were layoffs in August to SolarCity’s marketing and sales team.
Musk tweeted on Sunday that Tesla and SolarCity will not need to raise equity or corporate debt in the fourth quarter, and “probably not” in the first quarter either.
Would also like to correct expectations that Tesla/SolarCity will need to raise equity or corp debt in Q4. Won’t be necessary for either.
— Elon Musk (@elonmusk) October 9, 2016