- Automaker can bridge SolarCity funding gap, advisory firm says
- Report says vote gives minority investors enough of a voice
Shareholders of both Tesla Motors Inc. and SolarCity Corp. should vote in favor of the proposed $2.3 billion deal that would merge the companies, advisory firm Institutional Shareholder Services said.
Tesla, with a market value of about $30 billion, would be able to bridge the funding gap with cash-burning SolarCity, and the deal is a necessary step in the electric-car maker’s push to become an integrated sustainable energy company, ISS said in a report Friday. The firm also said Tesla gave minority shareholders enough of a voice to overcome governance concerns. Both companies have scheduled votes on Nov. 17.
The proposal to merge the two companies has been