Tesla has officially closed the acquisition of SolarCity, according to a new report from the Wall Street Journal.
The Summit 2013 – Picture by Dan Taylor / Heisenberg Media – www.heisenbergmedia.com
The $2.86-billion all-shares deal that Tesla CEO Elon Musk described as a “no-brainer” has been completed despite opposition from business analysts who are struggling to understand the benefits of the acquisition.
Critics believe the deal is a risk for an auto company that spent roughly $2.2 billion last year to launch the mid-priced Model 3 sedan as well as on its Gigafactory, which produces batteries.
“Whatever the synergies are down the road, it’s negative for current holders,” CFRA Research analyst Efraim Levy told CNBC.
Musk has said Tesla would be able to sell its customers an electric car, a home battery and a solar system all-in-one go once the deal is finalized. In August, he discussed the possibility of making and selling roofs made out of solar cells, targeting a new customer market.
The CEO has also said solar roof for cars will “probably” be an option for Tesla customers in the future.
Musk wants to see Tesla become a company that can produce and accumulate electricity to power homes and cars without any use of fossil fuels.
“To solve the sustainable-energy question, we need sustainable-energy production, which is going to come primarily in the form of solar,” he was quoted back in June.
“Combine that with stationary storage and an electric vehicle and you have a complete solution to a sustainable-energy future. Those are three parts that are needed. And those are three things that I think Tesla should be providing.”