Tesla Motors Inc. and SolarCity Corp. shareholders will vote on their proposed merger at a pair of special meetings on Nov. 17, the companies said in a regulatory filing today.
The two companies agreed on July 31 to merge. Elon Musk is the chairman and largest shareholder of both, as well as chief executive officer of electric-car maker Tesla. His cousin Lyndon Rive is the CEO of SolarCity, an installer of solar panels.
Musk’s deep involvement with both companies has led to some investor unrest and lawsuits from seven different stockholders. Other shareholders questioned the business logic of the because SolarCity and Tesla are both burning cash while trying to fund future growth in nascent businesses. In a filing Tuesday, Tesla said that it will no longer need to raise capital in the fourth quarter and possibly not in the first quarter even if the merger is approved.
Tesla said in a statement Wednesday that it will share more updates with shareholders about the strategic plan for combining the companies and will provide more financial information on Nov. 1. Musk’s has said his plan is for the new Tesla, which is funding development of its Model 3 mass-market electric car and the Gigafactory battery facility, is to give consumers a one-stop shop for solar energy generation, home battery storage and a way to charge their electric car.
The companies’ Wednesday filing said, in addition to the vote date, that Tesla is paying out $441 million to holders of its 2018 senior convertible notes and has another $205 million outstanding. The Palo Alto, California-based company expects to pay the $441 million in the third and fourth quarters, according to the filing.
Tesla’s statement also said that its shareholders can vote online, by phone or e-mail any time on or before Nov. 16.