Over in American, Elon Musk’s companies have confirmed that Tesla Motors has bought SolarCity in an all-stock transaction worth £2bn.
The firms believe it is the right time to bring the companies together with Tesla bringing out its ‘Powerwall’ and ‘Powerpack’ stationary storage products, whilst SolarCity is getting ready to offer next-generation differentiated solar solutions.
Musk said it’s a “no-brainer” and explains that “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. It’s an obvious thing to do.”
By working together, they can operate more efficiently and complement one another. Their products can be fully integrated while “providing customers with an aesthetically beautiful and simple one-stop solar and storage experience: one installation, one service contract, one phone app.” Elon Musk
“The resultant transaction will see Elon Musk paying Elon Musk a substantial amount of Tesla shares in exchange for his SolarCity shares. But the companies argue that they expect to save $150m in the first year alone, as well as being able to cut hardware and installation costs and use Tesla’s retail network to extend SolarCity’s reach internationally.” The Guardian
Initially, minority shareholders questioned the necessity of merging the company and caused the transaction to face uncertain prospects.
Whilst the deal may face scrutiny for concern over monopolisation, Elon Musk’s principle motive appears to be working towards the global use of sustainable and renewable energy. This can surely only be a good thing? The synergies will tie together the two sustainable energy businesses and work towards a common sustainable energy vision.