Elon Musk has long been known for his revolutionary and bold ideas, so it came as little surprise when he announced Tesla would be purchasing SolarCity, a giant in the Solar Energy industry, for $2.6 billion in an all-stock deal.
The deal, which is being hailed as a potential revolution in the energy industry, is a merger of two of the world’s foremost pioneers in clean solutions.
“”By joining forces, we can operate more efficiently and fully integrate our products,” Musk wrote in a blog post, “while providing customers with an aesthetically beautiful and simple one-stop solar + storage experience: one installation, one service contract, one phone app.”
The purchase will allow SolarCity’s innovative technology to reach far more customers at a lower cost. The funding mechanism behind Elon Musk’s technological empire will allow SolarCity to diffuse its products and drive down market pricing for consumers.
Musk appears to be pushing for a product bundle, whereby he can combine SolarCity’s solar panels with Tesla’s Powerwall home battery system.
Not all investors are happy however, as some argue the merger is unnecessary and unsustainable.
“”Given the close relationships between the two companies anyway, there’s no reason they couldn’t do the same kind of thing and bring SolarCity sales into the [Tesla] stores without buying the company,” argues Sam Abuelsamid, a senior research analyst at the market research firm Navigant. “It wouldn’t be the first time companies have had a partnership like that.”
Despite the fact that some investors are nervous, Musk seems to be his normal confident self.
“Now is the right time to bring our two companies together,” Musk writes.
The sale is expected to be finalized in the fourth quarter of 2016, as it still needs approval from shareholders of both merging companies.
Read the blog post from the Tesla team Here.