Elon Musk: Tesla acquisition of SolarCity needed to happen

Mortgage & Real Estate

Last week, Tesla announced it acquired SolarCity to “create the world’s only integrated sustainable energy company, from energy generation to storage to transportation.”

With the announcement, Tesla stated, “The acquisition would enable us to transform into a truly integrated sustainable energy company.”

SolarCity provides homeowners with solar panels and Tesla is currently working on a battery strong enough to power an entire household’s activities.

In a follow-up CNBC interview with Elon Musk, the CEO of Tesla, said “It is really an accident of history that the companies are even separate.”

From the piece:

Musk said the need to join both companies became apparent as customers began doing joint deals with the two.

“It was getting clunkier and clunkier to do these joint deals,” Musk said, citing a recently signed 20-year contract with the Kaua’i Island Utility Cooperative for a SolarCity solar array and Tesla energy storage facility on the island as an example.

So what’s expected to happen now that the companies merged?

For one, CNBC cited that SolarCity is expected to add more than $500 million in cash to Tesla’s balance sheet over the next three years and will add more than $1 billion in revenue next year.

Both Tesla and SolarCity are making waves in green housing initiative, as seen here and here.  

 

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