Big news today! Tesla Motors issued a public statement announcing “it’s now time to complete the picture” — in other words, the company famous for making the fastest electric cars the world has ever seen wants to buy the country’s biggest private solar energy provider, SolarCity. If the deal goes through, Tesla Motors will secure a sustainable energy behemoth comprised of electric cars (Tesla Motors), energy storage (Powerwall) and energy generation (SolarCity).
“We would be able to expand our addressable market further than either company could do separately. Because of the shared ideals of the companies and our customers, those who are interested in buying Tesla vehicles or Powerwalls are naturally interested in going solar, and the reverse is true as well. When brought together by the high foot traffic that is drawn to Tesla’s stores, everyone should benefit,” the statement reads.
“Culturally, this is a great fit. Both companies are driven by a mission of sustainability, innovation, and overcoming any challenges that stand in the way of progress.”
The offer is worth $2.8 billion in stock-to-stock and has a big chance to go through. For one, Tesla is right — the two companies could grow to be huge together simply because the services they provide are so synergetic. Secondly, SolarCity is owned by Elon Musk’s cousins. Elon Musk is also a member of SolarCity’s board since the company was incorporated. So far, so good.
“We need to achieve a tight integration of the products,” Musk told reporters in a conference call on Tuesday. “I think it’s an obvious thing to do.”
It seems like Musk’s plan is to secure leadership of SolarCity in time for the much-anticipated release of the Powerwall — a rechargeable lithium-ion battery product manufactured by Tesla Motors for home use. So, what happens next is a homeowner can opt for a full package involving solar panels, but also Tesla batteries, and, why not, even a Tesla car. Best of all, though, all of these services can be integrated under a single roof. This means cheaper and more reliable services for users.
“The world does not lack for automotive companies,” Musk said. “The world lacks for sustainable energy companies.”
The future looks bright for Tesla/Solar City… and it looks bright for renewables.