Tesla wins U.S. antitrust approval to buy SolarCity

And just this week, SolarCity announced layoffs for 108 employees at two of its California offices in anticipation of the Tesla deal, The Mercury News reports.

SolarCity Founder & COO Peter Rive, Chairman Elon Musk, SolarCity Founder & CEO Lyndon Rive celebrate the company's IPO at the NASDAQ Stock Market on Thursday, Dec. 13, 2012 in NY. This comes after the Tesla Motors founder and CEO took to Twitter to tease about a new product for the electric auto line.

Musk's purchase comes after the company revealed that it would cut down on operating costs to lessen expenses. CEO Elon Musk has personally bought $65 million worth of bonds, and SolarCity CEO Lyndon Rive and CTO Peter Rive have purchased bonds worth $17.5 million each.

Neither Tesla nor SolarCity immediately responded to a request for comment. Institutional investors have invested hundreds of millions in the solar installer. However, Mr. Musk had to face fury from board of directors initially over this merger, but later on succeeded to convince the shareholders.


Personal backing by owners and executives usually sends positive signals to the market about the business. On June 30 at the end of its most current quarter, the energy company had total debt of $3.25 billion; most of it was in the form of solar asset-backed notes or bonds. Moreover, it would also raise some questions on the company's stability and sustainability. However, it did not disclose the cumulative amount raised through bond offering.

SolarCity agreed to the deal amid decreased expectations of growth for the company.

Rive added, "Ultimately Elon, Pete, and I expect to be minority investors".


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