August 5, 2016
Elon Musk’s vision to vertically integrate a solar powered network of energy for cars, buildings, homes and more may come to fruition. This week, the co-founder and CEO of Tesla Motors announced the $2.6 billion all-stock deal to merge SolarCity Corp. with Tesla, which is pending approval by regulators and both companies’ shareholders’ vote.
His intentions are larger than the price tag of the merger. If all goes well, there will be retail stores nationwide that sell rooftop solar systems and solar-powered wall-mounted storage units to charge Tesla’s electric automobiles. While the $35,000 Model 3 Tesla’s assembly line has yet to be built, the success of this merger relies heavily on the generously priced vehicle, as well as the outcome of Musk’s $5 billion battery factory, “Gigafactory.”
Critics are wary of the monetary challenges surrounding the deal, as neither company is profitable. But, supporters see the plan as strategically sound, and believe in Tesla’s strong brand.
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