/>
X

Tesla to buy SolarCity for $2.6bn

Tesla wants to move beyond electric vehicles to become a renewable-energy products company.
natalie-gagliordi-author.jpg
Written by Natalie Gagliordi, Senior Writer on

Tesla announced Monday it has proposed a deal to buy solar systems provider SolarCity for $2.6bn.

Tesla said the deal would give the combined companies the ability to create "fully integrated residential, commercial, and grid-scale products that improve the way that energy is generated, stored and consumed".

Simply put, Tesla wants to move beyond electric vehicles to become a renewable-energy products company. The idea is to use Tesla's range of energy storage products to store energy generated from SolarCity's solar panels, thereby creating a one-stop shop for renewable energy purchasing, installation, and management.

"This is really all part of solving the sustainable energy problem," Tesla CEO Elon Musk said on a conference call.

Tesla first tried to buy SolarCity in June, but the deal sparked scrutiny from Wall Street and concerns over Musk's personal ties to SolarCity. In addition to his role with Tesla, Musk is also the chairman and largest individual shareholder of SolarCity. What's more, SolarCity's CEO, Lyndon Rive, is Musk's cousin.

For these reasons, Musk attempted distance himself from the specifics of the deal, telling analysts on the conference call he was "fully recused from the matter".

SolarCity gets 45 days to seek a higher bidder in a process known as a "go-shop" period. Tesla says it's confident the deal will close in the fourth quarter of 2016.

SEE ALSO: Mobileye, Tesla to part ways | Tesla reportedly faces another federal probe related to fatal crash | Of course Apple's working on electric car, says Tesla chief Elon Musk | Tesla's master plan: Pickup trucks, Autopilot push, solar tech | Tesla Motors outlines efforts to boost Chinese sales

Related

On July 12, we'll see the universe like never before
51656393132-ca88bc21e3-k

On July 12, we'll see the universe like never before

Space
Delta Air Lines just made an embarrassing announcement (you may be livid)
screen-shot-2022-06-22-at-3-50-54-pm.png

Delta Air Lines just made an embarrassing announcement (you may be livid)

Business
Cybersecurity leaders are anticipating mass resignations within the year - here's why
cybersecurity

Cybersecurity leaders are anticipating mass resignations within the year - here's why

Security