Tesla said Tuesday that it has placed an offer to acquire SolarCity in an effort to “complete the picture” of its big plans for Tesla Energy. SolarCity is a power company that sells and installs solar panels, which makes this a very intriguing bid.
“Tesla customers can drive clean cars and they can use our battery packs to help consume energy more efficiently, but they still need access to the most sustainable energy source that’s available: the sun,” Tesla explained in a release announcing the news.
If the company’s offer is accepted, we bet Tesla will continue to push this marketing message, that its cars are built and charged using clean energy. Additionally, Tesla might be able to sell a whole package deal to consumers – after all, folks buying its cars are clearly already interested in green energy. “Here, buy our car, and buy these solar panels for our house,” the marketing could read.
Tesla basically said as much:
- We would be the world’s only vertically integrated energy company offering end-to-end clean energy products to our customers. This would start with the car that you drive and the energy that you use to charge it, and would extend to how everything else in your home or business is powered. With your Model S, Model X, or Model 3, your solar panel system, and your Powerwall all in place, you would be able to deploy and consume energy in the most efficient and sustainable way possible, lowering your costs and minimizing your dependence on fossil fuels and the grid.
- We would be able to expand our addressable market further than either company could do separately. Because of the shared ideals of the companies and our customers, those who are interested in buying Tesla vehicles or Powerwalls are naturally interested in going solar, and the reverse is true as well. When brought together by the high foot traffic that is drawn to Tesla’s stores, everyone should benefit.
- We would be able to maximize and build on the core competencies of each company. Tesla’s experience in design, engineering, and manufacturing should help continue to advance solar panel technology, including by making solar panels add to the look of your home. Similarly, SolarCity’s wide network of sales and distribution channels and expertise in offering customer-friendly financing products would significantly benefit Tesla and its customers.
- We would be able to provide the best possible installation service for all of our clean energy products. SolarCity is the best at installing solar panel systems, and that expertise translates seamlessly to the installation of Powerwalls and charging systems for Tesla vehicles.
- Culturally, this is a great fit. Both companies are driven by a mission of sustainability, innovation, and overcoming any challenges that stand in the way of progress.
Tesla is offering between $26.50 to $28.50 per share for the company, giving it a 21-30 percent premium, the automaker said. Not bad for a company with a $2.08 billion market cap.