NEW YORK (TheStreet) -- Tesla (TSLA) and SolarCity (SCTY) shareholders voted in favor of the previously announced $2.6 billion merger, effectively saying they had bought into Tesla CEO Elon Musk's vision. Musk had notably pushed hard for the deal to pass, claiming a deal between the two companies would be mutually beneficial.
"Look, this is the $1 trillion idea with an enormous amount of headline risk. And frankly this is great for SolarCity shareholders," Triogem Asset Management managing partner Tim Seymour said on CNBC's "Closing Bell" on Thursday afternoon.
But if the deal does fail, then the "halo effect" that surround Musk could be damaged a bit, which might not be a bad thing, he noted.
"Again a phenomenal innovator," Seymour said about Musk. "One of our country's most interesting and powerful guys. Except for the fact that he's trying to do a lot more than possible right now. I think you've got to simplify the idea."
Going forward, the stock's future will be determined by whether Tesla can deliver on production, he noted. Tesla is all about deliveries, cash flow and cash burn.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Tesla as a Sell with a ratings score of D+. This is driven by a number of negative factors, which the team believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks the team covers.