Elon Musk’s Tesla electrical automobile business has made an offer to purchase Musk’s solar energy business, SolarCity, for as much as $2.8 billion in stock in an effort to create a one-stop-shop for cleaner energy.
SolarCity, for which Musk is both chairman and its largest investor, is the marketplace leader in property solar panel setups in the United States, however has about $6.24 billion liabilities, and debt.
Musk explained the offer as a “no-brainer”, stated, “Instead of making three journeys to a home to put in a vehicle charger and solar panels and battery pack, you can integrate that into a single visit. It’s an obvious thing to do.”
If the deal goes well, SolarCity will adopt the Tesla brand and offer its solar panels along with Tesla’s PowerWall house batteries to store electricity produced throughout the day for when it is required at night.
Both of the firms, situated 17 miles apart in Silicon Valley. Tesla has actually lost $1.2 billion in the previous two years alone while SolarCity has suffered losses exceeding $1.1 billion during the same duration.