Tesla announced it made an offer to buy SolarCity, a solar-panel company that has Elon Musk as its biggest shareholder.
You would have thought that Elon Musk has other priorities these days, as Tesla is getting ready to start its battery production at the 5-billion-dollar Gigafactory plant, while the automaker has to upgrade the Fremont plant so it can start building its most affordable electric model to date on a very fast pace. Furthermore, there is also money to be put in Tesla’s global expansion strategy. But Musk’s vision seems to go beyond just making cars. He wants an all-in-one clean energy solution for its customers. And this is where SolarCity, a maker of solar roof panels, comes into play.
The automaker has just announced its intention of buying the firm in a stock deal worth as much as 2.8 billion dollars. Musk, who is the chairman of SolarCity, CEO of Tesla and the largest shareholder of both companies, described the deal as a “no brainer” and he said that “it is now time to complete the picture,” that includes electric cars, household energy storage systems and solar panels.
“Tesla customers can drive clean cars and they can use our battery packs to help consume energy more efficiently, but they still need access to the most sustainable energy source that’s available: the sun,” Musk said in a blog post. “Instead of making three trips to a house to put in a car charger and solar panels and battery pack, you can integrate that into a single visit.”
But the automaker’s investors are apparently not sharing his view. While SolarCity shares rose as much as 29 percent in extended trading, Tesla fell as much as 14 percent, accounting for a loss in value of about 4.3 billion dollars.