Tesla offers to acquire SolarCity
Eletric motor manufacturer, Tesla Motors, plans to acquire SolarCity in order to boost its level of sustainability.
Tesla has worked towards complete sustainability since its inception, offering increasingly affordable electric vehicles. In March 2015 it launched Tesla Energy, which allows customers - both businesses and individuals - to benefit from renewable energy storage.
SolarCity is the industry leader in the residential, commercial, and industrial markets, making it as easy as possible for customers to make the move to clean energy. The company has partnered with Tesla before, including using its battery packs as a part of various solar projects.
Tesla's has published its offer to SolarCity on its blog, and reads as follows:
If completed, we believe that a combination of Tesla and SolarCity would provide significant benefits to our shareholders, customers and employees:
- We would be the world’s only vertically integrated energy company offering end-to-end clean energy products to our customers. This would start with the car that you drive and the energy that you use to charge it, and would extend to how everything else in your home or business is powered. With your Model S, Model X, or Model 3, your solar panel system, and your Powerwall all in place, you would be able to deploy and consume energy in the most efficient and sustainable way possible, lowering your costs and minimizing your dependence on fossil fuels and the grid.
- 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.
- We would be able to maximize and build on the core competencies of each company. Tesla’s experience in design, engineering, and manufacturing should help continue to advance solar panel technology, including by making solar panels add to the look of your home. Similarly, SolarCity’s wide network of sales and distribution channels and expertise in offering customer-friendly financing products would significantly benefit Tesla and its customers.
- We would be able to provide the best possible installation service for all of our clean energy products. SolarCity is the best at installing solar panel systems, and that expertise translates seamlessly to the installation of Powerwalls and charging systems for Tesla vehicles.
- 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.
Read the June issue of Business Review USA & Canada here
- How Elon Musk pulled off a $44bn hostile takeover of TwitterLeadership & Strategy
- Why has Tesla CEO Elon Musk acquired a stake in Twitter?Leadership & Strategy
- Robot wars: Will electric car giant Tesla win the race to launch the first fleet of robotaxis?Technology & AI
- Tesla Motors CEO Elon Musk Reports Stock as OvervaluedLeadership & Strategy