Tesla Motors stated on Tuesday its $2.6 billion merger with SolarCity Corp would include more than $500 million in money to the electrical automaker’s balance sheet over the next 3 years, while adding more than $1 billion to profits in 2017.
Shares of Tesla dropped another 2 percent in after-hours trade after toppling 4 percent in afternoon trade to close at $197.73. Likewise, shares of solar panel installer SolarCity dropped another 3.5 percent after reducing 2.7 percent throughout routine trading at $19.07.
Tesla, whose shares had dropped 10 percent since the deal was revealed in June, utilized an eight-page file published on its blog site and financier relations website after the market closed to persuade hesitant investors in advance of a November 17 vote on the deal.
Tesla President Elon Musk, who is chairman of SolarCity and the biggest investor in both firms, has explained their mix as a “no brainer.”
