Tesla and SolarCity have reached a $2.6 billion, all-stock deal under which the electric-car maker will acquire the solar company.
Tesla first made an offer to buy SolarCity in late June, and despite cloudy predictions from analysts, “now is the right time to bring our two companies together,” says a post on Tesla’s website announcing the acquisition. The merger will create “the world’s only vertically integrated sustainable energy company,” it says. “As one company, Tesla (storage) and SolarCity (solar) can create fully integrated residential, commercial and grid-scale products that improve the way that energy is generated, stored and consumed.”
Tesla is getting ready to scale its Powerwall and Powerpack stationary storage products and SolarCity is about to offer new solar systems. The companies say that by joining forces they can more efficiently integrate their products and provide customers with a one-stop solar and storage shop. This will save customers money by lowering hardware costs, reducing installation costs, improving manufacturing efficiency and reducing customer acquisition costs, Tesla says.
The companies expect the merger will save $150 million in the first year after closing, which they say will happen later this year. Before the deal can close, it must be approved by a majority of shareholders from both Tesla and SolarCity.
Tesla CEO Elon Musk, who is also a major shareholder and board member at SolarCity, has recused himself from voting.