Currently reading: Tesla buys Solarcity for £1.96 billion
Electric car maker wants to integrate solar panels into its charging system, reducing demand on electric grids
Sam Sheehan
News
1 min read
2 August 2016

Tesla has bought solar energy company Solarcity for close to £1.96 billion in order to integrate its technology into the charging systems of Tesla cars.

Solarcity is an American company responsible for designing, making and supplying solar power systems for houses and business. Tesla has said the company's technology is well suited to supplying energy for its electric cars.

The deal will see Tesla become a completely 'vertical' energy company, providing customers with everything from the power source to the car itself.

In a previous letter of intent to Solarcity ahead of the deal, Tesla explained that the solar systems would also retain their ability to power everything else in a house or office.

It said: “With your Model S, Model X or Model 3, your solar panel system, and your Powerwall all in place, you would be able to deploy and consume energy in the most efficient and sustainable way possible, lowering your costs and minimising your dependence on fossil fuels and the grid.”

Tesla and Solarcity have been working together for some time, as Tesla has been supplying its fellow American brand with battery packs. Both companies have reported losses in their most recent quarterly statements.

Tesla confirms 'master plan, part two' including compact SUV and pick-up

Advertisement
Advertisement

Find an Autocar review

Read our review

Car review
Tesla Model X

Tesla's X takes aim at the seven-seat SUV market with extreme performance - and a price to match

Join the debate

Comments
5
Add a comment…
xxxx 23 June 2016

Regardless of shares and stocks

and might have got hold of the wrong end in an earlier post, it can only be a good thing. If I had my way, where feasible, every new house valued at > £300,000 in the UK would, by law, have to have some solar panels on the roof. It would add a tiny percentage to cost but would pay for itself and you'd get some free fuel for your car or boiler!
TegTypeR 23 June 2016

Reading in other media, there

Reading in other media, there seems to be a lot of controversy over the proposed deal, mainly because the offer made by Tesla was so low in value.

To me, that's business and a business is only worth what someone wants to pay for it.

Gone are the days though when car companies used to be just car companies though...

The Doctor 23 June 2016

"insiders are confident a

"insiders are confident a deal will be made"

Very unlikely. The drop in Tesla's share price is greater than the jump in SolarCity's showing that Tesla investors currently value the latter at less than zero.

It's pretty outrageous that there was no mention of this proposed deal when Tesla did its most recent equity fundraise as most investors believed the money would be going towards developing the Model 3, not bailing out another of the chief executive's companies.

xxxx 23 June 2016

Share price drop. Maybe you're confused

The Doctor wrote:

"insiders are confident a deal will be made"

Very unlikely. The drop in Tesla's share price is greater than the jump in SolarCity's showing that Tesla investors currently value the latter at less than zero.
.

Telsa Share prices --- Mar 2013 $35, Feb 2016 $150, Now $196. Selected prices I know but in 3 years the price has gone from $35 to $200. Maybe you getting confused with BMW whose share price has gone from around 105 to 74?? But then that's not anti-Telsa

The Doctor 23 June 2016

*sigh*

xxxx wrote:

Telsa Share prices --- Mar 2013 $35, Feb 2016 $150, Now $196. Selected prices I know but in 3 years the price has gone from $35 to $200. Maybe you getting confused with BMW whose share price has gone from around 105 to 74?? But then that's not anti-Telsa

Tesla's shares shed over 10% on the news which equates to a loss in company value of about $3.2 billion. That's greater than the proposed acquisition price of SolarCity which shows you what Tesla's shareholders think of the deal.

SolarCity is burning cash and without some sort of bailout is likely to go bankrupt. Musk is just proposing to spend Tesla shareholders' cash to rescue his other investments. Seeing Tesla obsessives try and rationalise this fact is just totes adorbs.

Find an Autocar car review