Tesla Motors Inc. has finalized its $2 billion acquisition of SolarCity Corp., uniting two Musk-founded enterprises under one company that promises to provide the clean energy equivalent of farm-to-table foods.
The merger makes a lot of sense. Tesla is perhaps the most recognizable electric vehicle company in the world, while SolarCity is the nation’s largest solar panel installer. Musk has announced his plan to sell solar panels in Tesla stores, making them a one-stop shop for clean energy generation and usage. This means that customers can use Tesla products to collect solar energy to power their homes and charge their Model S.
“We’re trying to make an integrated product,” Musk said during a meeting with Tesla shareholders last Thursday. “So you have an integrated solar roof with a Powerwall and an electric car, and you just go into a Tesla store, just say yes, it just happens. It all works, it’s seamless and you love it.”
Apparently, shareholders of both companies saw the sense in this plan too, and voted to approve it by large margins, with more than 85% of Tesla shares agreed to the merger. That margin shows that many shareholders are in it with Musk for the long haul.
There are many hurdles the new company will have to overcome, including seamlessly integrating SolarCity operations into Tesla. SolarCity is much less successful and has many outstanding debts that will transfer to Tesla. Moreover, Tesla faces increased competition in the electric vehicle market and the prospect of an eco-unfriendly US president.
While there are many questions and doubts surrounding the future of Tesla, the successful acquisition shows that shareholders have bought into Musk and his vision.
The new company’s first joint product will be a solar panel that looks like a typical roof tile and is slated for release next summer.
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