Hours after billionaire investor Ron Baron told CNBC he believes that he “can make 30 to 50 times” his current $300 million investment in 1.5 million Tesla Motors (TSLA) shares over 15 years, the automaker’s founder and chief executive officer, Elon Musk, received another piece of good news.
In a report released Friday, the advisory firm Institutional Shareholder Services issued a report Friday urging shareholders to vote in favor of Tesla’s $2.45 billion proposed merger with solar panel maker SolarCity (SCTY), a move that previously triggered widespread criticism due to the supposed lack of synergy between the two companies’ products, as well as the extensive capital requirements for both.
“They’re the leading independent evaluator in the world and actually have a tendency to, if anything, be conservative in their recommendations,” Musk told the broadcaster, admitting that he didn’t expect ISS to endorse the merger, as “they can be a bit negative,” but that Tesla is “very, very glad” that the advisory firm did. He also praised those he consulted at ISS for their work pushing forward the pending deal’s new likelihood of success.
“I was really impressed with the team that I met and the depth of the questions that they asked, and they spent a lot of time with Tesla and with SolarCity and with our independent Board of Directors, and then they came to a conclusion, which is fantastic,” Musk said.
Tesla’s shares rose Friday morning following the report’s release to a high of $193.31 from a low of $186.14, before lingering above $190 in the afternoon. SolarCity’s shares also rose, from a low of $18.24 early Friday morning to a high of $20.63 by around 11 a.m., before leveling out but remaining above $20 over the next several hours.