Tesla (TSLA) Shareholders Approve SolarCity (SCTY) Merger

November 17, 2016 4:06 PM EST

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Tesla (NASDAQ: TSLA) shareholders approved the SolarCity (NASDAQ: SCTY) merger, the company announced at a Special Meeting of shareholders on Thursday.

Tesla shareholders voted "overwhelmingly" in favor of the deal. 85 percent of unaffiliated shareholders voted in favor of the merger.

Tesla CEO Elon Musk promised to bring solar power roofs to Tesla vehicles using SolarCity technology. "Your faith will be rewarded," Musk told investors.

Under the agreement, announced in August, SolarCity stockholders will receive 0.110 Tesla common shares per SolarCity share they own.

Baird analyst Ben Kallo was positive on the merger. In a note to clients Friday he said while controversial they see potential long-term benefits as Tesla has identified growth opportunities, including solar roof and complete energy systems. Also SolarCity is shifting toward cash sales and to become less reliant on capital markets. He said the approval should remove an overhang in Tesla stock.

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