Elon Musk’s Tesla and Solar City shareholders approved merging in an effort to create an integrated clean energy company. As Bold Business previously reported, Musk’s vision of a combined company, that will sell solar roof shingles, battery units and electric powered cars, will now be accomplished.
Critics of Musk’s move have focused their comments on Solar City and its losses. Solar City lost $769 million in 2015 and $375 million in 2014. Losses have also been reported nine month 2016 losses of $758 million dollars on revenue of $245 million. Critics fear Solar City will drag the performance of Tesla and require significant cash to fund its operations.
While Musk’s vision for clean energy is Bold, challenges going forward could be large. The new Trump administration is expected to be less supportive of tax breaks and credits for solar. Tesla electric car purchasers are eligible for up to a $7500 federal tax credit and SolarCity customers enjoy a 30% tax credit up to the amount of the qualified investment in solar equipment. During the campaign, Trump vowed to Mr. Trump repeal the Obama administration’s Clean Power Plan. Obama’s plan calls for a 32% reduction in power-plant carbon emissions from 2005 levels by 2030 and has been deemed harmful to coal and other energy industries and resulted in job losses.