Tesla Shareholders Approve SolarCity Merger

Tesla Motors Inc.’s outside shareholders have agreed by an 85% margin to acquire home solar panel maker SolarCity Corp. in a stock swap deal worth about $2.2 billion.

Elon Musk serves as chairman and CEO of each company and is a major shareholder in both. He claims that integrating the two companies will generate $1 billion in annual revenue in 2017 and $500 million in cash to Tesla’s balance sheet.

“Your faith will be rewarded,” Musk told shareholders, but analysts remain skeptical. They question the synergies Musk touts and point to chronic losses for both companies. Tesla shares plunged 13% when the merger was proposed in June.