Tesla (TSLA) CEO Musk Sees SolarCity (SCTY) Deal Receiving Shareholder Approval; Will Detail in 'Master Plan'

July 20, 2016 8:18 AM EDT

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Tesla (Nasdaq: TSLA) CEO Elon Musk expects that the company's proposed acquisition of SolarCity (Nasdaq: SCTY) will pass muster with investors.

According to the WSJ, Musk is expected to include details of the merger with his "Master Plan," which could be announced as soon as this week. Musk will outline how the inclusion of SolarCity will help Tesla transition to an energy company that specializes in utilizing batteries to generate and store power.

Musk commented, The most informed investors are highly supportive of the transaction ... [He has] yet to talk to an investor after I have fully explained the situation and not had them support it ... Most just didn’t understand how bringing together a car and a solar company made sense from a product standpoint.

Musk sees a supermajority, or two-thirds majority, shareholder vote to approve the deal.

Tesla previously offered to acquire SolarCity for $26.50 to $28.50 per share.

Shares of Tesla are indicated higher Wednesday.



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