Tesla Motors will provide strategic and product plans for a combined company with SolarCity Corp. ahead of a Nov. 17 merger vote by shareholders of both companies, the electric carmaker said.
“Over the next few weeks, Tesla will share important updates regarding our strategic plan for the combined company” including an Oct. 28 unveiling of a solar roof product, Tesla said in a company blog post on Wednesday.
The companies also filed with the Securities and Exchange Commission on Wednesday, stating that each SolarCity share will receive 0.11 Tesla shares upon completion of the proposed merger. That figure was unchanged from previous SEC filings, according to Reuters.
Tesla said that it expects to issue about 11,080,333 shares of the company’s common stock to SolarCity shareholders if the merger is approved. That will represent a stake of about 6.9 percent in Tesla.
The new SEC filling shows that the Tesla board determined that those who became shareholders by Sept. 23 would be eligible to vote on the merger proposals. The filing also says the Tesla shareholder meeting will be held on company property in Fremont, Calif., and the SolarCity meeting will take place at a hotel in Foster City, Calif.
On Sunday, Tesla CEO Elon Musk posted comments on Twitter saying that the two companies won’t need to ask for more cash this quarter as the two companies prepare for a merger.
Musk tweeted that he would “like to correct expectations that Tesla/SolarCity will need to raise equity or corp debt in Q4. Won’t be necessary for either.”
In response to a tweet asking if the first quarter of 2017 was likely for it to happen, Musk replied, “Probably not then either.”
Tesla is planning to raise additional cash during the fourth quarter to prepare for production of the Model 3.
Tesla has been working on calming down shareholders and increasing their confidence in the merger. Soon after Musk announced the proposal to acquire SolarCity in June, investor skepticism led to a 10-percent plunge in stock prices the next day.
Last week, Goldman Sachs downgraded Tesla soon after Morgan Stanley did the same. Musk continues losing support on Wall Street. The timing for losing recommendations to buy Tesla stock has not been good, as Musk feels the pressure to rally investors for a new fundraising round.
Musk is shown in the photo above with his cousins, SolarCity technology chief Peter Rive (left) and CEO Lyndon Rive (right). Together, the three had purchased more than 80 percent of a $124 SolarCity bond issue in late August. Musk said he made the purchase as a “show of faith” in the company, according to the Wall Street Journal.
Musk controls 21.7 percent of SolarCity stock, Wednesday’s filing with the Securities and Exchange Commission shows.
Tesla will be reporting third quarter financial results on Oct. 26.