In a move to become the world’s first vertically integrated energy company, Tesla has made a bid to acquire SolarCity to complete their green energy trifecta.
Tesla might be well known for their ground breaking electric vehicles, but their green initiatives stretch wider than pure transport. Tesla announced yesterday that they have made a $2.8bn USD offer to acquire solar panel installation company SolarCity. Building on their home and business battery (Tesla Energy) launched last year, this move makes total sense.
The acquisition of SolarCity will give Tesla the ability to offer their electric vehicle customers a clean way to charge their EVs. The Tesla team wrote in a blogpost – “It’s now time to complete the picture. 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.”
The technology offered by Tesla will allow customers to consume electricity in an efficient and more sustainable way, making Tesla “the world’s only vertically integrated energy company”. The deal is still under consideration and the SolarCity board is yet to vote on the proposal made by Elon Musk’s company. Interestingly, Musk sits on the SolarCity board but will of course abstain from voting on the merger due to the clear inherent conflict of interest.
You can’t help to think that even though he won’t vote, Mr Musk has had a big influence on the SolarCity board with his visions of a more sustainable future. He helped start the company, and it’s run by two of his cousins. He owns 22% of SolarCity and 21% of Tesla. He also confirmed to reporters that the potential purchase of SolarCity will not have an impact on the production of the highly anticipated Tesla Model 3, that is set to arrive in the latter part of 2017.
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