The duo has a received the blessing from the Institutional Shareholder Services, helping to green-light Tesla’s (NASDAQ:TSLA) $2.6 billion acquisition of SolarCity (NASDAQ:SCTY).
Tesla and SolarCity have the support of several large shareholders and its large base of individual shareholders who have bought into the companies’ promise for a greener and cleaner future.
It probably helped that Tesla and SolarCity showed off its latest joint project, the solar roof, in that it should help convince investors that a combination is in the best interest of everyone.
Of course, not too many people have an issue with the concept of the deal, which is Tesla adding solar power to its product portfolio of energy storage products and electric vehicles. The issue that most people do have is trapped within the four sides of the financial statements.
Both companies burn a lot of cash and while Musk did ease concerns about an impending capital raise in the short-term, many doubt that the company can continue operating both business segments without raising capital.
Despite an earnings report that seemed better than expected on the surface, a new solar roof and positive commentary around the company’s autonomous-driving capabilities, the stock remains under pressure. While up about 2% Friday, it’s down roughly 10% over the past month.
